Cabinet approves Viability Gap Funding (VGF) scheme for implementation of Offshore Wind Energy Projects
The Union Cabinet, led by Prime Minister Narendra Modi, approved a Viability Gap Funding (VGF) scheme worth Rs.7453 crore for offshore wind energy projects. This includes Rs.6853 crore for 1 GW of wind energy (500 MW each off Gujarat and Tamil Nadu) and Rs.600 crore for upgrading two ports for logistics. The VGF scheme supports the 2015 National Offshore Wind Energy Policy, aiming to harness offshore wind potential. Private developers will build the projects, with Power Grid Corporation of India Ltd handling power infrastructure. The initiative will reduce power costs, attract investments, create jobs, and contribute to India’s energy goals, reducing CO2 emissions by 2.98 million tons annually over 25 years.