Cabinet Approves Second Phase of Green Corridor

 Green Energy Corridor

Indian Market
by 5paisa Research Team Last Updated: 2022-08-08T18:59:45+05:30

The government of India has approved an outlay of Rs.12,031 crore for the second phase of the Green Energy Corridor. This is part of the commitment of the government to push renewable energy sources in India in a substantive manner.

The second phase of the Green Energy Corridor will actually facilitate the grid integration and power evacuation of close to 20 GW (gigawatts) of renewable energy across seven states of India. This will be an extension of the first phase of the Green Energy Corridor.

The second phase of the Green Energy Corridor approved by the CCEA (Cabinet Committee on Economic Affairs) will focus on interstate transmission systems. This phase will add 10,750 CKM (circuit kilometres) worth of transmission lines plus transformational capacity of nearly 27,500 MVA (mega volt amperes).

The seven states that will benefit from the second phase of the Green Energy Corridor include the states of Gujarat, Himachal Pradesh, Karnataka, Kerala, Rajasthan and Uttar Pradesh. The overall implementation will stretch from FY22 till FY27.

It may be recollected that the first phase of the Green Energy Corridor had a total outlay of Rs.10,142 crore. The ministry has confirmed that nearly 80% of the work pertaining to Phase 1 of the Green Economic Corridor has already been completed.

The second phase will have a total outlay of Rs.12,031 crore of which the central government will provide central financial assistance (CFA) of Rs.3,970 crore, which is nearly one-third of the total outlay in Phase 2. This will help to offset the inter-state transmission charges so that power costs to the consumer can be kept low and affordable.

The Green Energy Corridor will help India towards its COP26 commitments on promoting sustainable energy and reducing its carbon footprint. It will also assist India in getting on track for its ambitious target of 450 GW of installed renewable energy capacity by the year 2030.

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