Prime Minister Narendra Modi laid the foundation stone for NLC India’s 250 MW/500 MWh standalone Battery Energy Storage System (BESS) in Tamil Nadu on 11 October 2026. The project is being developed by NLC India Renewables Limited (NIRL), a wholly owned subsidiary of NLC India Limited (NLCIL), and is the first large-scale BESS project undertaken by the NLCIL Group.
The ceremony formed part of a programme in Chennai where the Prime Minister laid foundation stones for, inaugurated and dedicated to the nation development projects worth over ₹13,000 crore across urban transport, highways, railways, ports, petroleum refining and research. Tamil Nadu Governor Rajendra Arlekar, Chief Minister C. Joseph Vijay and Union Minister L. Murugan attended the event.
Project Details
NIRL received the Letter of Award for the project from Tamil Nadu Green Energy Corporation Limited (TNGECL) through a competitive bidding process, and NLCIL disclosed the award to the stock exchanges on 22 June 2025. The project comprises three standalone BESS units with an aggregate capacity of 250 MW/500 MWh, corresponding to a two-hour storage duration. The units will be located at the 400/230/110 kV substations at Ottapidaram, Anuppankulam and Kayathar in Tamil Nadu.
The systems are designed to complete two full charge–discharge cycles per day for on-demand usage. The project will be implemented under the build-own-operate (BOO) model, with Viability Gap Funding (VGF) support under the state component. With the foundation stone laid, the project moves from the award stage into on-ground execution.
Part of a ₹13,000 Crore Development Programme
According to the Prime Minister’s Office, the largest component of the Chennai programme was the Poonamallee–Vadapalani stretch of Phase II of the Chennai Metro Rail Project, built at around ₹4,900 crore, which features a 3.7-km double-decker structure and signalling designed to support driverless operations. The stretch is intended to cut commuter travel time and improve links between the western suburbs and the city centre. National highway projects worth around ₹3,700 crore included the 36-km Vadugapatti–Therkuvenganallur section of NH-744 and the 30-km Madurai Ring Road section of NH-744A and the foundation stone for the Thiruvarur Bypass on NH-83. Railway works worth over ₹750 crore included the Karaikal–Peralam line, three rail flyovers in and around Coimbatore and five redeveloped Amrit Bharat stations. The Prime Minister also dedicated the Sudha Gopalakrishnan Brain Centre at IIT Madras.
In the energy and petroleum segment, the Prime Minister also laid the foundation stone for a Group II/III Lube Oil Base Stocks project at the Manali Refinery of Chennai Petroleum Corporation Limited. The project has a capacity of 270 thousand metric tonnes per annum and an investment of around ₹1,620 crore. The Prime Minister said it would create local employment and help reduce the country’s imports.
Port Infrastructure and Green Energy Hub
Ports formed another major part of the programme. Projects at Chennai Port included a paved storage yard, four EXIM godowns, an upgraded cruise terminal and a seafarers’ club, while Kamarajar Port received Coal Berth-3 and the foundation for capital dredging works for Container Terminal Phase-I, Stage-II. At V.O. Chidambaranar (VOC) Port in Thoothukudi, eight major projects were inaugurated or had their foundation stones laid, aimed at expanding cargo and container capacity and building infrastructure for cleaner maritime energy.
In his address, the Prime Minister said the Centre has decided to invest about ₹17,000 crore to develop VOC Port as a world-class mega container and green energy hub capable of accommodating ultra-large container vessels, adding that this “will help Tamil Nadu become a global hub for industry and transport.” He also noted that ship turnaround time at Indian ports has been reduced by half in recent years.
NLC India’s Expanding Storage and Renewable Portfolio
The Tamil Nadu project builds on NLCIL’s earlier experience with battery storage. The company operates an 8 MWh BESS in the Andaman and Nicobar Islands, where the local administration has asked NLCIL to examine the feasibility of an additional 20 MWh system.
Its storage pipeline has continued to grow. On 30 September 2026, NLCIL informed the stock exchanges that NIRL had emerged as the successful bidder for a 265 MW/530 MWh standalone BESS project in Haryana, tendered by SJVN Limited under the VGF scheme. The capacity was secured through tariff-based competitive bidding at a final capacity charge of ₹2,35,000 per MW per month.
On the renewable side, the Ministry of Coal’s Year End Review 2025 reported that NLCIL had commissioned 1,599 MW of solar capacity by December 2025, with a target of adding 690 MW in FY 2025-26 and a long-term goal of 10 GW of renewable capacity by FY 2029-30.
Conclusion
The foundation stone marks a key milestone for NLCIL’s first large-scale energy storage project. Once operational, the three systems will add 500 MWh of grid-connected storage at major transmission substations in Tamil Nadu, offering two daily cycles of flexible supply. Together with the Haryana project and the company’s solar portfolio, the development reflects NLCIL’s continued diversification into renewable energy and storage, alongside the wider port and green energy investments announced for the state.
Official Sources
- Press Information Bureau (PMO) – PM lays the foundation stone, inaugurates and dedicates various development projects worth over ₹13,000 crore in Chennai, Tamil Nadu (11 October 2026)
- Prime Minister’s Office – PM to Visit Chennai on 11 October (10 October 2026)
- Prime Minister’s Office – PM’s address during the launch of development projects in Chennai (11 October 2026)
- NLC India Limited – Stock exchange disclosure: LoA to NIRL for 250 MW/500 MWh BESS from TNGECL (22 June 2025)
- NLC India Limited – Stock exchange disclosure: NIRL successful bidder for 265 MW/530 MWh BESS in Haryana (30 September 2026)
- Press Information Bureau – Ministry of Coal’s Year End Review 2025 (12 January 2026)
- NLC India Limited – NLCIL Projects (official website)
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