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VOL. I · EST. 11.2025 
SatyaDheesh
सत्याधीश
India's Ground Truth Record
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Union Cabinet to consider schemes for mineral processing and grid-scale storage funding

GS3Economy · S&T · Environment · Security· Industry, investment & MSMEs· Prelims + Mains·

Energy security and supply chain resilience: a key GS3 topic on infrastructure and manufacturing.

Why in news

The Union Cabinet is expected to consider schemes for capital expenditure support for critical mineral processing and viability gap funding for grid-scale storage systems.

Background

The proposed mineral processing scheme may provide up to 30% support for setting up plants. Recent data from CREA showed 1,835 million units of renewable energy were curtailed in July and August 2026.

Facts for Prelims

  • Fact1,835 million units of renewable energy were curtailed in July and August 2026.
  • FactOf the curtailed energy, 1,462 MU was solar and 373 MU was wind.
  • FactThe Ministry of Heavy Industries' PLI scheme targets 50 GWh of advanced chemistry cell manufacturing capacity.
  • FactThe PLI scheme allocates 10 GWh specifically for grid-scale stationary storage.
  • FactThe government identified lithium and nickel as minerals for domestic processing to support the EV battery chain.

Prelims practice question

With reference to the Production-Linked Incentive (PLI) scheme for advanced chemistry cells, consider the following statements:

  1. The scheme allocates 20 GWh specifically for grid-scale stationary storage.
  2. The government has identified lithium and nickel as minerals for domestic processing.
  3. The scheme targets a total manufacturing capacity of 50 GWh.

Which of the statements given above is/are correct?

  1. (a)2 only
  2. (b)3 only
  3. (c)2 and 3 only
  4. (d)1, 2 and 3
Show answer

Answer: (c) 2 and 3 only — Statements 2 and 3 are correct. Statement 1 is incorrect: The PLI scheme allocates 10 GWh specifically for grid-scale stationary storage.

For Mains

Q. Discuss the significance of grid-scale storage and domestic critical mineral processing in achieving India's renewable energy targets and strengthening the electric vehicle supply chain.

Dimensions to cover in your answer

  • Grid stability: Addressing the curtailment of 1,835 million units of renewable energy through storage.
  • Supply chain resilience: Reducing import reliance on lithium and nickel for domestic EV battery manufacturing.
  • Fiscal intervention: Utilizing Viability Gap Funding (VGF) to offset high capital costs of grid-scale infrastructure.

Keywords: Viability Gap Funding · Critical Minerals · Grid Stability · Renewable Energy Curtailment · Production-Linked Incentive · Supply Chain Resilience

Read the full news →Report a mistake in this noteHow notes are madeSource: The Hindu ↗Also: GS3 · Nuclear & new energy technologyAlso: GS2 · Government policies & schemes

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