New Delhi [India], June 20 : The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Viability Gap Funding (VGF) scheme for offshore wind energy projects.
The announcement was made by Finance Minister Nirmala Sitharaman on X (formerly Twitter) on Wednesday, where she outlined the details of the plan, which entails a total outlay of Rs 7453 crore.
Sitharaman posted, "The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, today approved the Viability Gap Funding (VGF) scheme for offshore wind energy projects at a total outlay of Rs.7453 crore, including an outlay of Rs.6853 crore for installation and commissioning of 1 GW of offshore wind energy projects (500 MW each off the coast of Gujarat and Tamil Nadu), and grant of Rs.600 crore for upgradation of two ports to meet logistics requirements for offshore wind energy projects."
}}}}The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, today approved the Viability Gap Funding (VGF) scheme for offshore wind energy projects at a total outlay of Rs.7453 crore, including an outlay of Rs.6853 crore for installation and commissioning of 1 GW of offshore… https://t.co/sXtAPX1sqO— Nirmala Sitharaman (@nsitharaman) June 19, 2024
The VGF scheme aims to support the installation and commissioning of 1 GW of offshore wind energy projects, with each project contributing 500 MW off the coasts of Gujarat and Tamil Nadu.
This initiative reflects the government's commitment to enhancing the country's renewable energy capabilities and reducing reliance on fossil fuels.
The scheme includes a dedicated outlay of Rs. 6853 crore for the establishment of 1 GW of offshore wind energy capacity. This will be equally distributed between two projects, each with a capacity of 500 MW, situated off the coasts of Gujarat and Tamil Nadu.
An additional Rs. 600 crore has been allocated for the upgradation of two key ports. These upgrades are crucial to meeting the logistics and infrastructural needs associated with the offshore wind energy projects, ensuring smooth operations and maintenance.
Gujarat and Tamil Nadu, both coastal states with significant wind potential, have been strategically chosen for these projects. The installation of wind energy turbines off their shores is expected to harness substantial wind power, contributing to the national grid and supporting the regions' energy needs.
The approval of this scheme is a major step towards achieving India's renewable energy targets. Offshore wind energy, characterized by higher and more consistent wind speeds, offers a more reliable source of power compared to onshore wind.
The addition of 1 GW to the renewable energy mix will significantly contribute to the country's goal of achieving 175 GW of renewable energy capacity by 2022, and further to 450 GW by 2030.
Prime Minister Narendra Modi's administration has been vocal about the need to accelerate the shift towards renewable energy sources, aiming to position India as a global leader in sustainable energy.
The VGF scheme is anticipated to attract both domestic and international investors, fostering innovation and technological advancements in the renewable energy sector.
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