The central government has released guidelines for the implementation of the viability gap funding (VGF) scheme for offshore wind energy projects with a budget of Rs 74.53 billion.
The scheme allocates Rs 68.53 billion for 1,000 MW of offshore wind capacity and Rs 6 billion for port infrastructure. It targets offshore wind projects along the Gujarat and Tamil Nadu coasts. The Ministry of New and Renewable Energy will oversee the scheme, while the Solar Energy Corporation of India Limited (SECI) will handle applications, awards, fund disbursements, and progress reports. The scheme will start with a 500 MW project in Gujarat and Tamil Nadu. The bidders will be selected through international bidding and an e-reverse auction, with ties resolved by the lowest VGF request or a draw. The scheme will support projects until 2031-32. The eligible bidders must have offshore wind project experience and meet financial criteria. Projects must be completed within 48 months of signing the power purchase agreement Bidders have to provide an earnest money deposit and performance bank guarantees. Additionally, projects must connect to the inter-state transmission system as per regulations. SECI will assist with substation coordinates and seabed allocation.
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