India’s Cabinet Committee on Economic Affairs, chaired by prime minister Narendra Modi, has approved the construction of intra-state transmission systems across seven states at an estimated cost of INR85.5 billion (US$1.35 billion).

The systems will run through Andhra Pradesh, Gujarat, Himachal Pradesh, Karnataka, Madhya Pradesh, Maharashtra and Rajasthan.

The Ministry of New and Renewable Energy (MNRE) said: “These States are rich in renewable resource potential and large capacity renewable power projects are planned there. Creation of an intra state transmission system will facilitate evacuation of renewable power from generation stations to load centres.”

The systmes would allow power generated to be evacuated to main centres of energy consumption such as Delhi and the state of Maharashtra.

The plans will involve 48 new grid sub-stations with total transformation capacity around 17,100MVA, to be completed over the next three to five years.

Government of India will contribute INR34.2 billion via its National Clean Energy Fund (NCEF), which is roughly 40% of the total cost. A KfW loan will account for another 40% of the cost and the remaining 20% will come from state contributions.

In June PV Tech reported government intentions to build these “green energy corridors”.