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The Ministry of New and Renewable Energy (MNRE) has issued guidelines for the implementation of a Viability Gap Funding (VGF) scheme aimed at developing offshore wind energy projects. The scheme, sanctioned by the President of India, targets the installation of 1,000 MW of offshore wind energy capacity. It will be implemented from the issuance of the order until the financial year 2031-32, with a budget allocation of ₹6853 crore.
The key goal of the guidelines is to support the commissioning of 1000 MW of offshore wind energy. These projects will be developed according to the detailed scheme guidelines, which outline the competitive bidding process for awarding projects under this scheme. The aim is to attract bidders to participate in the offshore wind energy sector, encouraging growth and ensuring the projects’ financial feasibility through VGF support.
The funding for this initiative will come from the budget allocated specifically for the establishment of the 1,000 MW offshore wind energy capacity. The Solar Energy Corporation of India (SECI) has been designated as the implementing agency responsible for overseeing the entire process. SECI will ensure the smooth execution of the scheme, following the guidelines established by MNRE.
The ministry has exercised its authority to implement this scheme with the necessary financial concurrence from the Internal Finance Division (IFD), which was granted on September 11, 2024. The scheme has also received full approval from MNRE to move forward.
This initiative reflects the government’s commitment to renewable energy development, focusing specifically on expanding India’s offshore wind energy capabilities. With the VGF scheme in place, the government aims to promote cleaner, sustainable energy solutions, contributing to the overall growth of the renewable energy sector in the country while reducing dependency on fossil fuels. The project is expected to play a significant role in meeting India’s renewable energy targets in the coming years.
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