India expands renewable energy capacity with $4.2bn investment programme
India has announced a new $4.2bn investment programme aimed at accelerating renewable energy deployment and modernising transmission infrastructure as the country seeks to meet its long-term energy transition targets.
India has launched a $4.2bn renewable energy investment programme designed to expand solar generation capacity and strengthen the country’s electricity transmission network.
The initiative, announced by the Ministry of Power on June 12, includes funding for large-scale solar projects, battery storage facilities and upgrades to regional transmission infrastructure. Officials said the programme is expected to support India’s goal of achieving 500GW of non-fossil fuel energy capacity by 2030.
According to government estimates, the investment package could attract an additional $8bn in private sector participation over the next three years. Several domestic energy companies have already expressed interest in participating in upcoming project tenders.
Analysts said the announcement reflects India’s continued focus on energy security and economic growth. Rising electricity demand from industrial users, data centres and urban development projects has increased pressure on existing infrastructure, particularly in rapidly growing regions.
The government also confirmed that a portion of the funding will be directed towards battery energy storage projects, which are expected to improve grid reliability and support greater integration of renewable energy sources.
Industry participants welcomed the move, noting that long-term policy support remains critical for achieving investment targets and maintaining investor confidence in the sector.
The first phase of the programme is expected to begin in the third quarter of 2026, with construction activities scheduled across multiple states including Rajasthan, Gujarat and Tamil Nadu.