The Ministry of Power (MoP) has temporarily waived the Department for Promotion of Industry and Internal Trade (DPIIT) registration requirement for bidders using lithium-ion cell technology with transfer-of-technology (ToT) arrangements involving land-border-sharing countries, allowing them to participate in tenders for grid-connected battery energy storage (BESS) projects.

The waiver will be for a one-year term, effective January 9, 2026.

The relaxation of the DPIIT registration requirement has been provided in light of the non-availability of adequate domestic manufacturing capacity for lithium-ion cells.

MoP noted that domestic grid-scale battery manufacturing is still in a nascent stage. It said lithium-ion cells remain the most mature and cost-effective technology used in grid-connected BESS worldwide.

According to Central Electricity Authority estimates, India will require 208 GWh of BESS by 2029-30, compared with the existing capacity of about 0.5 GWh.

In 2020, the government amended the General Financial Rules 2017, under which restrictions were imposed on bidders from countries sharing a land border with India.

The government has been taking steps to encourage domestic BESS manufacturing. Last year, the MoP directed states and procuring entities to ensure a minimum of 20% local content in the procurement of BESS projects implemented under the viability gap funding (VGF) program, supported through the Power System Development Fund (PSDF).

In 2025, various agencies in India floated tenders to develop projects with 17 GW/48 GWh of standalone BESS.

India auctioned 19,690 MWh of battery energy storage in 2025, a 447% year-over-year increase.

The lowest tariff discovered in 2025 was ₹148,000 (~$1637.45)/MW/month, 35.6% lower than the lowest tariff of ₹230,000 (~$2,433.74)/MW/month in 2024.

According to Mercom Research’s India’s Energy Storage Landscape 1H 2025 Report, India’s cumulative installed energy storage capacity reached 490 MWh by the end of June 2025.

The government has allowed states to implement standalone BESS projects under VGF, supported by PSDF in both two-hour and four-hour configurations. The original guidelines specified that the BESS capacity should preferably have a two-hour discharge duration and an average of 1.5 cycles per 24-hour period.