Archive · 26 Dec 2025
Government Mandates 20% Local Content for Battery Storage
The Indian government has decided that when they buy big batteries for storing energy, at least 20% of the cost must come from parts and software made in India.
This is to help Indian companies grow and make sure the batteries are good quality.
They will use this rule for a big project to build 30GWh of battery storage in 15 states.
A company called NTPC will handle 5GWh of that.
The government also said the batteries can't use old, used-up parts.
They made this rule because some states asked for special permission, but the government wants to support local businesses instead.
Government mandates 20% local content for BESS procurements under VGF scheme.
States must ensure BESS meets quality standards and prohibits refurbished battery cells.
Second tranche of VGF to support 30GWh BESS capacity, with 25GWh allocated to 15 states.
NTPC to develop the remaining 5GWh of BESS capacity.
EMS application software must be indigenously developed and made in India.
- Who
- Ministry of Power, Indian Government
- What
- Mandated 20% local content for Battery Energy Storage System (BESS) procurements
- When
- August (amendment), specific date not mentioned for the new clause
- Where
- India
- Why
- To promote indigenous development and address energy storage requirements
- Local Content Requirement
- 20% of total project cost
- Scheme
- Viability Gap Funding (VGF)
- BESS Capacity
- 30GWh
- States Allocated
- 15
- NTPC Capacity
- 5GWh
- EMS Software Requirement
- Made in India
- Prohibition
- Refurbished battery cells