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Home - Energy Storage - India mandates 20% domestic content in battery storage projects – SPE
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India mandates 20% domestic content in battery storage projects – SPE

solarenergyBy solarenergyDecember 30, 2025No Comments2 Mins Read
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India’s Ministry of Energy has mandated that all battery energy storage system (BESS) projects supported under the Viability Gap Funding (VGF) program meet a minimum local content threshold of 20%, with the aim of boosting domestic manufacturing and innovation.

December 30, 2025
Marija Maisch

By ESS news

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

The order, addressed to 15 beneficiary states and Indian state-owned energy company NTPC, is in response to requests from several states seeking exemptions from the Public Procurement (Preference to Make in India) (PPP-MII) Order for BESS procurement. After assessing these requests, the Ministry clarified the local substantive requirements and established a uniform threshold for all BESS projects supported by the VGF.

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

To read further, visit our ESS news website.

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