With total outlay of Rs. 7,453 crore, VGF scheme provides for commissioning of 1 GW of OWEP (500 MW each off the coast of Gujarat and Tamil Nadu), and upgradation of two ports to meet logistics requirements for these projects.

• India is fourth largest wind energy producer in world with cumulative installed capacity of 46.4 GW by May 2024.

About VGF scheme for OWEP

• Nodal Ministry: Ministry of New and Renewable Energy (MNRE).
• It is a crucial step in implementing National Offshore Wind Energy Policy, 2015 which aims to explore and promote deployment of India’s vast offshore wind energy potential within its exclusive economic zone.
• Private developers will establish projects and Power Grid Corporation of India Ltd. will build the necessary transmission infrastructure like offshore substations.

Significance of VGF scheme

• Commissioning of 1 GW OWEP will generate approximately 3.72 billion units of renewable electricity annually, reducing CO2 emissions by 2.98 million tons each year for 25 years.
• Reduced cost of power from offshore wind projects will make them viable for purchase by DISCOMs.
• Lead to creation of required ecosystem for development of offshore wind sector further attracting investments, development of indigenous manufacturing capabilities in this sector.