The Union Cabinet on Wednesday approved a 7,453 crore-Viability Gap Funding (VGF) scheme for offshore wind energy projects, including one in Gujarat.

Union minister Ashwini Vaishnaw

The scheme includes an outlay of 6,853 crore for the installation and commissioning of 1 GW of offshore wind energy projects (500 MW each off the coast of Gujarat and Tamil Nadu), and a grant of 600 crore for the upgradation of two ports to meet logistics requirements for offshore wind energy projects.

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The VGF scheme is a major step towards implementation of the National Offshore Wind Energy Policy notified in 2015, with an aim to exploit the vast offshore wind energy potential that exists within the exclusive economic zone of India, Information and Broadcasting Minister Ashwini Vaishnaw said in a press briefing.

The VGF support from the government will reduce the cost of power from offshore wind projects and make them viable for purchase by Discoms (power distribution companies), he noted.

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The Ministry of New and Renewable Energy, as the nodal ministry, will coordinate with various ministries or departments to ensure the successful implementation of the scheme.