**Executive Summary**
This document is a response to Starred Question No. 161 in Lok Sabha, answered on February 11, 2026, concerning the establishment of dedicated Green Energy Zones. The response states that there is currently no proposal under the Ministry of New & Renewable Energy to notify dedicated Green Energy Zones. However, it outlines various initiatives undertaken by the Government to support renewable power generation, storage, and green manufacturing.
**Key Points / Main Content**
*Current Status*
* No current proposal exists under the Ministry of New & Renewable Energy to notify dedicated Green Energy Zones.
*Government Initiatives to Support Renewable Energy*
* *Solar Power Projects:* Scheme for setting up Solar Parks and Ultra Mega Solar Power projects to provide land and transmission for RE projects.
* *Related Schemes:* PM-KUSUM, PM Surya Ghar Muft Bijli Yojana, National Programme on High Efficiency Solar PV Modules, New Solar Power Scheme (for Tribal and PVTG Habitations/Villages), National Green Hydrogen Mission, and VGF Scheme for Offshore Wind Energy Projects.
* *Renewable Energy Potential Zones:* MNRE is identifying Renewable Energy Potential Zones; 333.6 GW declared in 5 States.
* *PLI Scheme:* Production Linked Incentive (PLI) Scheme for High Efficiency Solar PV Modules is being implemented, with Letters of Award issued for 48,337 MW of manufacturing units.
* *Domestic Sourcing Mandate:* Schemes mandate sourcing solar PV cells and modules from domestic sources where government subsidy is provided.
* *Basic Customs Duty:* BCD imposed on imports of solar PV cells, modules, inverters, and glass.
* *BCD Exemption:* Exemption from BCD on imports of specified goods for solar PV cell/module manufacturers.
*Battery Energy Storage System (BESS)*
* *BESS Guidelines:* Guidelines notified for procurement and utilization of BESS.
* *Energy Storage Framework:* National Framework issued to promote Energy Storage Systems.
* *Pumped Storage Projects (PSP):* Guidelines issued to promote PSPs.
* *ISTS Charge Waiver:* 100% waiver of Inter-State Transmission System (ISTS) charges for PSP projects awarded by June 30, 2028 and co-located BESS projects commissioned by June 30, 2028.
* *VGF Scheme for BESS:* Approved VGF Scheme for BESS development in March 2024 and June 2025.
* *Battery Storage Programme:* Earmarked capacity for grid-scale stationary storage under the “National Programme on Advanced Chemistry Cell (ACC) Battery Storage".
* *Energy Storage Advisory:* Advisory issued on ‘Co-locating Energy Storage Systems with Solar Power Projects'.
*Skill Development:*
* *Skill Development Initiatives:* Government is implementing skill development initiatives under programmes like Surya Mitra, Varun Mitra, and Vayu Mitra.
**Impact Analysis**
*Stakeholders: Renewable Energy Developers*
* **Impact:** Can benefit from government schemes and initiatives promoting solar and other renewable energy projects (Solar Parks, PLI, BESS etc.).
* **Action Required:** To stay informed about and leverage existing government schemes like Solar Parks, Ultra Mega Solar Power Projects and Production Linked Incentive (PLI) Scheme and the various VGF Schemes.
*Stakeholders: Domestic Manufacturers of Solar PV Cells/Modules*
* **Impact:** Benefit from mandated domestic sourcing in some schemes and protection from imports through Basic Customs Duty (BCD) and exemption from BCD on imports of raw materials.
* **Action Required:** Understand eligibility criteria for participating in the government schemes mandating domestic sourcing, such as CPSU Scheme Phase-II, PM-KUSUM Components B & C, and PM Surya Ghar: Muft Bijli Yojana.
*Stakeholders: State Governments*
* **Impact:** States can facilitate Renewable Energy Potential Zones and private sector-led initiatives in the renewable energy sector.
* **Action Required:** Should collaborate with the MNRE in identifying and developing Renewable Energy Potential Zones and should be aware of incentives for private developers.
*Stakeholders: Consumers*
* **Impact:** Could benefit from cleaner energy and cost efficiencies arising from these initiatives.
* **Action Required:** Stay informed about new initiatives and benefits of renewable energy to support energy transitions.
Key Entities Referenced
Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM): A scheme to support farmers in setting up solar power generation and using it for irrigation.
Production Linked Incentive (PLI) Scheme for High Efficiency Solar PV Modules: A scheme to incentivize domestic manufacturing of high-efficiency solar PV modules.
Viability Gap Funding (VGF) Scheme: A scheme to provide financial support for infrastructure projects that are economically justified but fall short of financial viability.
Ministry of New and Renewable Energy: The primary ministry responsible for policies related to renewable energy in India.
Dedicated Green Energy Zones: The subject of the starred question, concerning the notification and criteria for establishing dedicated areas for renewable energy generation, storage and manufacturing.
GOVERNMENT OF INDIA
MINISTRY OF NEW AND RENEWABLE ENERGY
LOK SABHA
STARRED QUESTION NO. 161
ANSWERED ON 11.02.2026
DEDICATED GREEN ENERGY ZONES
*161. SHRI PUSHPENDRA SAROJ
Will the Minister of New and Renewable Energy be pleased to state:
(a) whether the Government has taken any in-principle or formal decision to notify dedicated
Green Energy Zones for renewable power generation, storage and green manufacturing and if so,
the details thereof;
(b) the details of objective criteria finalised for identification of such zones including land
availability, grid connectivity, industrial linkage and employment potential;
(c) whether any assessment or inter-ministerial study has quantified the expected district-wise
employment, skilling requirements and local value addition arising from proposed Green Energy
Zones;
(d) the States which have been identified or are under consideration for such zones, if any; and
(e) the fiscal policy or viability-gap support proposed for State Governments or private
developers for zone-level infrastructure, manufacturing units and skill development?
ANSWER
THE MINISTER OF NEW & RENEWABLE ENERGY AND CONSUMER AFFAIRS, &
FOOD AND PUBLIC DISTRIBUTION
(SHRI PRALHAD JOSHI)
(a) to (e) A statement is laid on the Table of the House.
*****Statement referred to in reply to parts (a) to (e) of the Lok Sabha Starred Question No. 161
to be answered on 11.02.2026 regarding ‘Dedicated Green Energy Zones’ asked by Shri
Pushpendra Saroj.
(a) to (e) Presently there is no proposal under Ministry of New & Renewable Energy to notify
dedicated Green Energy Zones for renewable power generation, storage and green manufacturing.
However, several initiatives have been taken by the Government to support renewable power
generation, storage and clean energy manufacturing. Details of such major initiatives are placed at
Annexure.
*****Annexure referred to in reply to parts (a) to (e) of the Lok Sabha Starred Question No. 161
to be answered on 11.02.2026 regarding ‘Dedicated Green Energy Zones’ asked by Shri
Pushpendra Saroj.
Major initiatives taken by the Government to support renewable power generation, storage and
clean energy manufacturing are given below:
(i) Scheme for setting up of Solar Parks and Ultra Mega Solar Power projects is being
implemented to provide land and transmission to RE developers for installation of RE projects
at large scale.
(ii) Schemes such as Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-
KUSUM), PM Surya Ghar Muft Bijli Yojana, National Programme on High Efficiency Solar
PV Modules, New Solar Power Scheme (for Tribal and PVTG Habitations/Villages) under
Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM JANMAN) and Dharti Aabha
Janjatiya Gram Utkarsh Abhiyan (DA JGUA), National Green Hydrogen Mission, Viability
Gap Funding (VGF) Scheme for Offshore Wind Energy Projects have been launched.
(iii) MNRE is undertaking the activity of declaring Renewable Energy Potential Zones to facilitate
the development of renewable energy capacity across the country. Till date, MNRE has
declared Renewable Energy Potential Zones of 333.6 GW, beyond 500 GW target, in 5 States.
(iv) The Government is implementing the Production Linked Incentive (PLI) Scheme for High
Efficiency Solar PV Modules, for achieving domestic manufacturing capacity of Giga Watt
(GW) scale in High Efficiency Solar PV modules, with an outlay of Rs. 24,000 crore. Under
the Scheme, Letters of Award have been issued for setting up of 48,337 MW of fully/ partially
integrated solar PV module manufacturing units.
(v) Under some of the current schemes of the Ministry of New & Renewable Energy, namely
CPSU Scheme Phase-II, PM-KUSUM Components B & C, and PM Surya Ghar: Muft Bijli
Yojana, wherein government subsidy is given, it has been mandated to source solar PV cells
and modules from domestic sources.
(vi) The Government has imposed Basic Customs Duty (BCD) on import of solar PV cells, solar
PV modules, solar inverters, and solar glass.
(vii) The Government has exempted Basic Customs Duty on import of goods specified in List 18
of Notification No. 45/2025-Customs dated 24th October 2025, for the manufacturer of solar
PV cells and modules.(viii) Notified Guidelines for Procurement and Utilization of Battery Energy Storage System
(BESS) as part of Generation, Transmission and Distribution assets, along with Ancillary
Services.
(ix) Issued National Framework to promote Energy Storage Systems in the country.
(x) Issued Guidelines to promote Pumped Storage Projects (PSP).
(xi) Granted 100% waiver of Inter-State Transmission System (ISTS) charges for PSP for which
construction work is awarded on or before June 30, 2028 and also for co-located BESS
projects, commissioned on or before 30th June 2028, with certain conditions.
(xii) In March 2024, approved a Viability Gap Funding (VGF) Scheme for the development of
large-scale BESS with an outlay of ₹3,760 crore for the development of 13,220 MWh, at a
VGF of ₹27 lakh per MWh.
(xiii) In June 2025, approved another VGF Scheme for 30 GWh, funded through ₹5,400 crore
from the Power System Development Fund (PSDF), at a VGF of ₹18 lakh per MWh.
(xiv) Earmarked 10 GWh capacity for Grid Scale Stationary Storage applications under the
“National Programme on Advanced Chemistry Cell (ACC) Battery Storage".
(xv) Issued an Advisory on ‘Co-locating Energy Storage Systems with Solar Power Projects to
enhance grid stability and cost efficiency’.
(xvi) Government is implementing skill development initiatives under the programmes such as
Surya Mitra, Varun Mitra and Vayu Mitra.