Cabinet Approves ₹7453 Cr Funding for Offshore Wind Energy Projects

The Union Cabinet, chaired by PM Narendra Modi, has approved the Viability Gap Funding (VGF) scheme for offshore wind energy projects with a total outlay of ₹7453 crore. This includes ₹6853 crore for the installation and commissioning of 1 GW of offshore wind energy projects (500 MW each off the coast of Gujarat and Tamil Nadu) and ₹600 crore for upgrading two ports to meet the logistics requirements of these projects.

This scheme supports the National Offshore Wind Energy Policy (2015) to harness India's offshore wind energy potential. The VGF will make offshore wind power cost-effective for DISCOMs by reducing production costs. Private developers, selected through transparent bidding, will establish the projects, while Power Grid Corporation of India Ltd (PGCIL) will construct the power evacuation infrastructure, including offshore substations. The Ministry of New and Renewable Energy will coordinate with various ministries and departments to ensure successful implementation.

Additionally, specific port infrastructure is required for the construction and operation of offshore wind energy projects. The Ministry of Ports, Shipping and Waterways will support two ports to handle the storage and movement of heavy, large-dimension equipment essential for offshore wind development.