The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Viability Gap Funding (VGF) scheme for offshore wind energy projects with a total outlay of Rs 7453 crore. Finance Minister Nirmala Sitharaman announced the details of the plan, which includes Rs. 6853 crore for the installation of 1 GW of offshore wind energy projects (500 MW each off the coast of Gujarat and Tamil Nadu), and Rs. 600 crore for the upgradation of two ports to meet logistics requirements for the projects.
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 is part of the government’s commitment to enhancing renewable energy capabilities and reducing reliance on fossil fuels. The dedicated outlay of Rs. 6853 crore will be equally distributed between two projects, each with a capacity of 500 MW, situated off the coasts of Gujarat and Tamil Nadu.
The allocation of an additional Rs. 600 crore for the upgradation of two ports is crucial to meeting the logistics and infrastructural needs associated with the offshore wind energy projects. 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 significant step towards achieving India’s renewable energy targets. Offshore wind energy, with its 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 play a vital role in helping the country reach its 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 expected to attract both domestic and international investors, fostering innovation and technological advancements in the renewable energy sector.
Overall, the approval of the Viability Gap Funding scheme for offshore wind energy projects marks a significant milestone in India’s renewable energy journey. By focusing on harnessing the potential of offshore wind energy, the government is taking proactive steps towards achieving its renewable energy targets and ultimately reducing the country’s carbon footprint. This initiative is not only crucial for meeting the energy needs of various regions but also for paving the way towards a more sustainable future for India.
