Union Cabinet Approves Rs 7,453 Crore VGF Scheme for Offshore Wind Energy

The Union Cabinet has approved a Rs 7,453 crore Viability Gap Funding (VGF) scheme aimed at enhancing offshore wind energy projects in Gujarat and Tamil Nadu. This initiative focuses on a 1 GW installation, plus port upgrades, to solidify India’s National Offshore Wind Energy Policy from 2015.

In a significant move to bolster renewable energy, the Union Cabinet on Wednesday sanctioned a Rs 7,453 crore Viability Gap Funding (VGF) scheme for offshore wind energy projects, including a key initiative in Gujarat.

The approved scheme comprises an outlay of Rs 6,853 crore for the installation and commissioning of 1 GW of offshore wind energy projects, with 500 MW each off the coasts of Gujarat and Tamil Nadu, as well as a Rs 600 crore grant for upgrading two ports essential for project logistics. Information and Broadcasting Minister Ashwini Vaishnaw highlighted that the VGF scheme aligns with the National Offshore Wind Energy Policy introduced in 2015, aimed at harnessing the extensive wind energy potential within India's exclusive economic zone.

He added that the VGF support from the government is expected to lower the power generation costs, making offshore wind energy projects financially viable for power distribution companies (Discoms). The Ministry of New and Renewable Energy will spearhead coordination among various ministries to ensure the scheme's successful execution.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)