Gujarat to Invest Rs 29,000 Crore in Green Energy Corridor-III to Push Renewable Shift

Gujarat’s installed power capacity — including wind, solar and hydro — currently meets about 58% of the state’s electricity demand, according to TOI. According to another TOI report, Gujarat is planning to invest Rs 29,000 crore to develop the third Green Energy Corridor (GEC-III) with plans to transmit 16,500MW of renewable power from across the state.

The GEC-III is expected to enable connect new renewable energy zones in Kutch, Jamnagar-Bet Dwarka, Banaskantha-Patan and parts of central Gujarat. Gujarat aims to build 3,430 circuit kilometers of lines through six 765kV substations and an additional 860 circuit kilometers through four 400 kV substations. Installation of four statcoms is also in the pipeline to maintain power quality across network.

The Rs 29,000 crore investment is additional to the two earlier corridor projects, i.e., GEC-I, a Rs 1,932 crore project targeting 4,000MW and GEC-II, worth Rs 3,636 crore, which is expected to be completed by March 2027.

Green Push in Motion

In March 2025, Mint reported that the Union government was considering to provide capital assistance worth about Rs 22,400 crore, to states including Gujarat, Rajasthan, Karnataka, Maharashtra and Andhra Pradesh, under the third phase of the Green Energy Corridor.

GEC-III was proposed in the Union budget for FY26. The overall cost for the third phase is estimated around ₹56,000 crore and the Centre would provide 40% of the cost, Mint reported.

The major states to be covered under the scheme include Gujarat, Rajasthan, Karnataka, Maharashtra and Andhra Pradesh. Most of the projects under the third phase were expected to be in Gujarat, with the state projected to work on transmission projects worth over Rs 29,000 crore, followed by Rajasthan with projects worth over Rs 9,000 crore.

 The Government on January 6, 2022 had approved the second phase of the Green Energy Corridor with an outlay of Rs 12,031 crore to facilitate grid integration and power evacuation of about 20 GW of renewable energy projects in seven states — Gujarat, Himachal Pradesh, Karnataka, Kerala, Rajasthan, Tamil Nadu and Uttar Pradesh.

With the upcoming investments in sight, Gujarat— a state that has consistently demonstrated its leadership in clean energy adoption — is poised play a key role in India's green energy transition.