The Union Cabinet has approved the viability gap funding (VGF) scheme for offshore wind energy projects at a total outlay of Rs 74.53 billion.
This includes an outlay of Rs 68.53 billion 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 6 billion for upgradation of two ports to meet logistics requirements for offshore wind energy projects. The 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 successful commissioning of 1 GW offshore wind projects will produce renewable electricity of about 3.72 billion units annually, which will result in annual reduction of 2.98 million tonne of CO2 equivalent emission for a period of 25 years.