The ministry of power has pronounced several amendments in the memories of operation of the Viability Gap Funding Scheme of the battery energy storage systems. Such changes have been conveyed through a letter dated August 4, 2025, to the Principal Secretaries of Energy in various states. The primary goal of the amendments is the encouragement of utilizing indigenous software and the provision of battery energy storage systems deployed in the country having high-quality characteristics.
The most notable modification is the insertion of a new clause, stipulated as 3.9, stating that the application software of the Energy Management System of the BESS should be domestically developed within India. This will go a long way in the promotion of homegrown technology usage in energy initiatives and self-sufficiency in this critical area.
The second significant amendment is the modification of clause 3.6. This provision has now put in order the grid connectivity and land responsibilities. According to the new version of the clause, there is a possibility of the project being linked to the interstate transmission system or to the intrastate transmission system. Nevertheless, the provision of grid connectivity and land will also be borne as per the arrangements set in the Request for Selection document. This clarification should make the project developers have a better understanding of their positions and responsibilities and further plan their projects in accordance with it.
Besides these two significant amendments, the Ministry has come up with a new sub-clause under Guideline 4. This is a new clause that is aimed at quality assurance, and it deals with issues of using second-hand material. It is clearly mentioned that the Eligible Entity/the Renewable Energy Implementing Agency will play the role of ensuring that the installed BESS is of the necessary quality and refurbished battery cells are not to be used in any portion of the project. The rationale behind the action is the security of the long-term work and the safety of the energy storage systems to be installed in the country.
The Ministry addressed the letter to the Principal Secretaries of Energy of main states like Rajasthan, Gujarat, Maharashtra, Tamil Nadu, Karnataka, Andhra Pradesh, Madhya Pradesh, Telangana, Uttar Pradesh, Haryana, Kerala, Punjab, Chhattisgarh, Odisha and Uttarakhand. These are the states that will be instrumental in the deployment of energetic stores of electricity installations through the VGF scheme.
Besides the state officials, the letter was also addressed to the different key stakeholders at the central level. This also entails the Chairperson of the Central Electricity Authority and the Chairmen and Managing Directors of NTPC and Grid India, as well as senior officials of the Ministry of Power, viz.,the Secretary and Additional Secretary.
These changes indicate the further devotion of India to the development of its capability of renewable energy through the support of the battery storage systems, which are already reliable and national integrity assisted. Emphasis on developing indigenous software and matters of quality assurance highlights the trend of the government to improve the energy infrastructure of the country and reinforce the local technology ecosystem.
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