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VGF to be Provided for 1 GW Offshore Wind Energy – India Budget 2024

In her interim Budget 2024 speech last week, Finance Minister Nirmala Sitharaman announced that the government will provide Viability Gap Funding (VGF) for 1 GW offshore wind energy. "Viability gap funding will be provided for harnessing offshore wind energy potential for initial capacity of 1 giga-watt," said the Finance Minister.

 

The government plans to provide VGF for two sites off the coasts of Gujarat and Tamil Nadu. Offshore wind projects offer greater efficiency in power generation in comparison to onshore wind power projects because obstructions are not present. However, the technology involved is more complex and expensive, which necessitates Central government support.

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