NEW DELHI: The
Union cabinet
, chaired by Prime Minister
Narendra Modi
, approved the
Viability Gap Funding
(VGF) scheme for offshore wind energy projects, with a total outlay of Rs7453 crore.
“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,” stated the government press release.
The
VGF scheme
is a major step towards implementing the National Offshore Wind Energy Policy, which was notified in 2015. The policy aims to exploit the vast offshore wind energy potential within India’s exclusive economic zone. Under the scheme, private developers, selected through a transparent bidding process, will establish the projects while the Power Grid Corporation of India Ltd (PGCIL) will construct the power excavation infrastructure, including offshore substations. The Ministry of New and Renewable Energy will coordinate with various Ministries and Departments to ensure successful implementation of the scheme.
“Construction of offshore wind energy projects and its operations also require specific port infrastructure, which can handle storage and movement of heavy and large dimension equipment. Under the scheme, two ports in the country will be supported by Ministry of Ports, Shipping and Waterways to meet the requirements of offshore wind development,” the statement said.
The commissioning of 1 GW offshore wind projects, upon successful completion, is expected to generate approximately 3.72 billion units of renewable electricity on an annual basis. This clean energy production will contribute to a significant reduction in greenhouse gas emissions, amounting to 2.98 million ton of CO2 equivalent per year, over a span of 25 years.
Moreover, the implementation of this scheme will serve as a catalyst for the development of offshore wind energy in India. It will also foster the establishment of a necessary ecosystem within the country, which will complement and support its existing ocean-based economic activities, according to the media statement.
