The cabinet recently granted approval for a viability gap funding of Rs. 3760 for a battery energy storage system. This initiative aims to facilitate the establishment of 4000 MW projects by the fiscal year 2030-2031, with financial assistance covering up to what percentage of the total capital cost?

### Concept & Facts Viability Gap Funding (VGF) is a government mechanism providing financial support in the form of capital grants to infrastructure projects that are economically justified but fall short of financial viability. ### Step-by-Step Solution * The Union Cabinet approved a Scheme for Viability Gap Funding (VGF) for the development of Battery Energy Storage Systems (BESS). * The scheme has an initial outlay of Rs. 3,760 crore. * It is designed to facilitate the establishment of 4,000 MWh of BESS projects by 2030-31. * Under this scheme, the government will provide financial support of up to 40% of the total capital cost as viability gap funding. ### Exam Strategy & Shortcut In many Indian infrastructure VGF schemes, standard capital cost assistance often caps at 20% to 40%. For the specific 2023 BESS initiative, 40% is the established benchmark. ### Common Pitfall Mixing up the megawatts (4000) or funding amount with the percentage. Always read carefully whether the question asks for capacity, funding amount, or percentage limit. ### Final Answer Therefore, the correct answer is **40%**.