# Cabinet Nod for Power Fund Extension

> India seeks Cabinet approval to extend Power System Development Fund for five years.
- Title: Cabinet Nod for Power Fund Extension · The Economic Times
- Summary: India seeks Cabinet approval to extend Power System Development Fund for five years. India's power ministry wants Cabinet approval to continue the Power…
- Keywords: power system development fund, india, renewable energy capacity, grid curtailment, cabinet approval, public sector undertakings, Cabinet, Nod, Power, Fund, Extension, The Economic Times
- Source: The Economic Times — https://economictimes.indiatimes.com/industry/energy/power/cabinet-nod-sought-to-extend-power-fund-for-5-years/articleshow/134901990.cms
- Author: Shilpa Samant
- Published: 2026-10-12T20:01:00+00:00
- Read time: 1 min
- Topics: power system development fund, india, renewable energy capacity, grid curtailment, cabinet approval, public sector undertakings
## Power Ministry Requests Cabinet Approval
The power ministry seeks Cabinet approval for the Power System Development Fund continuation in FY27-FY31.
## PSDF Funds Grid Reliability Projects
The fund supports projects that ensure electricity grid reliability, security, and stability.
## PSDF Used for Non-Commercial Projects
It mainly supports investments that utilities cannot profitably make.
## Renewable Energy Grid Risk
Adding renewable capacity without enough transmission infrastructure risks grid curtailment for 35 GW by FY27.
## Key takeaway

India's power ministry wants Cabinet approval to continue the Power System Development Fund for FY27-FY31 to address renewable energy grid challenges.