Cabinet clears Rs 12,031 crore plan for 2nd green energy corridor

Why in news?

• In order to accelerate the penetration of renewable energy in the states, the Union Cabinet recently approved the second phase of the Green Energy Corridor (GEC). The projects in this phase would be set up in seven states to expedite the transmission of renewable energy.

About Green Energy Corridor (GEC)

• GEC is an alternative transmission system for renewable energy (RE) power projects. During the first phase of GEC, inter-state transmission projects were constructed by state-owned Power Grid Corporation of India (PGCIL) and some projects were awarded to private players through competitive bidding.
• The second phase will aim to add approximately 10,750 circuit kilometres (ckm) of transmission lines and approx. 27,500 Mega Volt-Amperes (MVA) transformation capacity of substations. The cost of the current phase is estimated at Rs 12,031.33 crore and Central Financial Assistance (CFA) of 33 percent of the project cost i.e. Rs 3,970.34 crore.