The Indian Ministry of Power has ordered all battery energy storage system (BESS) projects supported under the viability gap funding (VGF) scheme to meet a minimum 20% local content threshold, aiming to boost domestic manufacturing and innovation.


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From ESS News

The Indian Ministry of Power has issued a directive requiring a minimum 20% local content in all battery energy storage system (BESS) projects implemented under the Viability Gap Funding (VGF) Scheme, supported through the Power System Development Fund (PSDF).

The order, addressed to 15 beneficiary states and India’s state‑owned power utility NTPC, responds to requests from several states seeking exemptions from the Public Procurement (Preference to Make in India) (PPP-MII) Order for BESS procurement. After reviewing these requests, the Ministry clarified the local content requirements and established a uniform threshold for all VGF-supported BESS projects.

States and procuring agencies must ensure that at least 20% of the total project cost qualifies as local content.

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