Govt clears Rs 7,453 crore VGF scheme for offshore wind energy projects

The VGF support from the government will reduce the cost of power from offshore wind projects and make them viable for purchase by Discoms, Minister Vaishnaw said

The Union Cabinet on Wednesday approved a Rs 7,453 crore-Viability Gap Funding (VGF) scheme for offshore wind energy projects, including one in Gujarat.

The scheme includes an outlay of Rs 6,853 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 a grant of Rs 600 crore for the upgradation of two ports to meet logistics requirements for offshore wind energy projects.
 

 

#WATCH | Information & Broadcasting Minister Ashwini Vaishnaw says, "Union Cabinet has taken a landmark decision by approving India's first offshore wind energy project. These will be 1GW offshore wind projects, 500 MW each (off the coast of Gujarat and Tamil Nadu). This is a big… pic.twitter.com/pqy8eLOgbL

— ANI (@ANI) June 19, 2024

The VGF scheme is a major step towards implementation of the National Offshore Wind Energy Policy notified in 2015, with an aim to exploit the vast offshore wind energy potential that exists within the exclusive economic zone of India, Information and Broadcasting Minister Ashwini Vaishnaw said in a press briefing.

The VGF support from the government will reduce the cost of power from offshore wind projects and make them viable for purchase by Discoms, he noted.

The Ministry of New and Renewable Energy, as the nodal ministry, will coordinate with various ministries or departments to ensure the successful implementation of the scheme.