The Cabinet Committee on Economic Affairs (CCEA) approved viability gap funding (VGF) for the construction of the Green Energy Corridor-II (GEC-II) in the Ladakh region, granted to the state-owned Power Grid Corporation of India (PGCIL). The GEC-II, an Inter-State Transmission System (ISTS) project aiming to connect upcoming renewable energy projects totalling 13 gigawatts in Ladakh, received approval. The government intends to complete the project by the financial year 2029-30, estimating a cost of Rs 207.73 billion. Central Financial Assistance (CFA) will cover 40% of the project cost, equivalent to Rs 83.09 billion.

The government designated PGCIL as the implementing agency for the project due to defense sensitivities and challenging climatic conditions in Ladakh. Launched in 2012, the GEC initiative serves as a dedicated transmission network connecting renewable energy zones to the national grid. Transmission lines for this project will extend through Himachal Pradesh and Punjab, terminating at Kaithal in Haryana, where integration with the National Grid will occur. An additional interconnection is planned from Leh to the existing Ladakh grid to ensure a reliable power supply for the region. Additionally, the project will link to the Leh-Alusteng-Srinagar line to provide power to Jammu & Kashmir. In total, the project will encompass constructing 713 km of transmission lines, including a 480 km high-voltage direct current (HVDC) line, and two 5 GW HVDC terminals at Pang in Ladakh and Kaithal in Haryana.

In his Independence Day speech in 2020, Prime Minister Narendra Modi announced plans for a 7.5 GW solar park in Ladakh. Following this, the Ministry of New and Renewable Energy (MNRE) devised a strategy to establish a 13 GW renewable energy generation capacity, along with a 12 GWh Battery Energy Storage System (BESS) in Pang, Ladakh.