The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Viability Gap Funding (VGF) scheme for offshore wind energy projects.

The announcement was made by Finance Minister Nirmala Sitharaman on X, where she outlined the details of the plan, which entails a total outlay of Rs 7453 crore.

Sitharaman posted, “The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, today approved the Viability Gap Funding (VGF) scheme for offshore wind energy projects at a total outlay of Rs.7453 crore, including an outlay of Rs.6853 crore for installation and commissioning of 1 GW of offshore 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 VGF scheme aims to support the installation and commissioning of 1 GW of offshore wind energy projects, with each project contributing 500 MW off the coasts of Gujarat and Tamil Nadu.