New Delhi: In her interim Budget 2024 speech on Thursday, 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 one giga-watt," said the Finance Minister.

India has set a target of putting in place 500 GW of renewable energy capacity by 2030. In the quest for increasing its RE capacity, India plans to utilise its coastline for setting up 10 GW of offshore wind capacity by 2030.

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 bcause obstructions are not present. However, the technology involved is more complex and expensive, which necessitates Central government support.