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Cabinet approves Rs 7,453-cr outlay for one GW wind energy projects

Friday, 21 Jun 2024
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The Union Cabinet has approved a viability gap funding (VGF) scheme with a total outlay of Rs 7,453 crore for one GW offshore wind energy projects in Gujarat and Tamil Nadu. The VGF scheme will facilitate the setting up of the firstever offshore wind energy projects in India, as stated by I&B Minister Ashwini Vaishnaw.

The VGF scheme for offshore wind energy projects also includes an outlay of Rs 6,853 crore for installation and commissioning of 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.

The successful commissioning of wind projects will produce renewable electricity of about 3.72 billion units annually, mitigating 2.98 million ton of CO2 equivalent emission for a period of 25 years. Further, it will lead to ecosystems in the country to supplement its ocean-based economic activities, and support the development of 37 GW of offshore wind energy initially at an investment of nearly Rs 4,50,000 crore. 

The VGF will also reduce the cost of power from offshore wind projects, and make them viable for purchase by distribution companies.

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