Yes, the ATL grant does cover the renovation of the lab. According to the Grant Utilization guidelines, schools can allocate up to Rs. 1.50 lakh from the grant for renovation purposes. This includes expenses related to electrical fittings, internet facility, painting and whitewashing, arranging furniture, storage boxes, printing banners, and boards, among other relevant aspects of lab renovation. Schools are encouraged to refer to the specific guidelines provided by the Atal Innovation Mission (AIM) for a comprehensive understanding of how the grant can be utilized for renovation needs.