**Executive Summary**
This document outlines the Indian government's initiatives to promote offshore wind energy, particularly in Gujarat and Tamil Nadu. It details the Viability Gap Funding (VGF) scheme, wind resource assessments conducted by the National Institute of Wind Energy (NIWE), and various policy measures to facilitate offshore wind project development. A key deadline is the commissioning of offshore wind projects by December 31, 2032, to avail of certain incentives.
**Key Points / Main Content**
* **Viability Gap Funding (VGF) Scheme:**
* Launched with a total outlay of ₹7453 crore.
* Aims to install and commission 1 GW of offshore wind energy projects.
* 500 MW each off the coast of Gujarat and Tamil Nadu.
* Includes the upgradation of two ports for logistics requirements.
* VGF earmarked is Rs. 4064 Cr for Gujarat and Rs. 2755 Cr for Tamil Nadu.
* Project capacity may be reduced if VGF is inadequate or increased if there are savings.
* **Wind Resource Assessments:**
* NIWE has installed a floating LiDAR buoy for wind resource assessment in Tamil Nadu.
* NIWE has completed the met-mast based wind resource measurements near Dhanushkodi.
* NIWE also carried out Geophysical study for Tamil Nadu site.
* Annual average wind speed at Dhanushkodi is 8.65 meters per second.
* Wind Power Density is 536 Watt per meter square at 102 meter above sea level.
* **Policy and Regulatory Measures:**
* 'Offshore Wind Energy Policy' notified in October 2015.
* 'Offshore Wind Energy Lease Rules, 2023' notified to regulate lease grants.
* Strategy Paper for Establishment of Offshore Wind Energy Projects' issued in July 2022.
* Central Transmission Utility (CTU) has planned initial 10 GW offshore transmission capacity.
* VGF Scheme guidelines issued on September 11, 2024.
* Offshore Wind included in Carbon Credits trading under the Paris Agreement.
* Inter-State Transmission (ISTS) Charges waived for projects commissioned by 31.12.2032.
* Waiver of additional surcharge for projects commissioned by December 2032.
* **Renewable Energy in Tamil Nadu:**
* Capacity Addition and Investment in Solar and Wind Sector listed in Annexure.
**Impact Analysis**
**Government of India (Ministry of New and Renewable Energy):**
* **Impact**: Responsible for planning, funding, and implementing policies to promote offshore wind energy development.
* **Action Required**: Monitor progress, provide funding, and ensure the effective implementation of the VGF scheme and other policy measures.
**National Institute of Wind Energy (NIWE):**
* **Impact**: Conducts resource assessments, studies, and provides technical support for offshore wind projects.
* **Action Required**: Continue conducting studies, providing data, and assisting in the development of offshore wind projects.
**Project Developers (Gujarat and Tamil Nadu):**
* **Impact**: Opportunity to develop offshore wind energy projects with financial support from the VGF scheme and regulatory incentives.
* **Action Required**: Participate in tenders, develop projects, and adhere to regulatory guidelines and timelines.
**Consumers of Electricity:**
* **Impact**: Potential access to renewable energy and reduced electricity costs in the long term.
* **Action Required**: Benefit from the adoption of renewable energy.
**Manufacturers and Exporters (particularly in States like Tamil Nadu):**
* **Impact**: Potential for increased demand for renewable energy equipment and export opportunities.
* **Action Required**: Expand manufacturing capabilities, improve product quality, and explore export markets.
Key Entities Referenced
Viability Gap Funding (VGF) scheme for offshore wind energy projects: A scheme to support offshore wind energy projects, with specific allocations for Gujarat and Tamil Nadu.
National Institute of Wind Energy (NIWE): Institute conducting wind resource assessments and studies, particularly in Tamil Nadu, related to offshore wind projects.
Offshore Wind Energy Lease Rules, 2023: Rules regulating the grant of lease of offshore areas for development of offshore wind energy projects.
Offshore Wind Energy Policy: Policy providing a framework for the development of offshore wind energy in the country.
Tamil Nadu: State where the first offshore wind energy tender is proposed and where various assessments and studies are being conducted.
GOVERNMENT OF INDIA
MINISTRY OF NEW AND RENEWABLE ENERGY
LOK SABHA
UNSTARRED QUESTION NO. 730
ANSWERED ON 04.02.2026
TENDERING OF OFFSHORE WIND ENERGY
730. DR. T SUMATHY ALIAS THAMIZHACHI THANGAPANDIAN
Will the Minister of NEW AND RENEWABLE ENERGY be pleased to state:
(a) whether the Government proposes to launch India’s first offshore wind energy tender off
the Tamil Nadu coast with an initial target of 1 gigawatt (GW) capacity and if so, the details
thereof;
(b) whether the National Institute of Wind Energy (NIWE) has completed or is completing
LiDAR assessments near Dhanushkodi for this purpose and if so, the details thereof;
(c) whether any Tamil Nadu–specific viability gap funding or incentives have been
earmarked under the national offshore wind framework and if so, the details thereof;
(d) whether delays in finalizing offshore wind support mechanisms have affected Tamil
Nadu’s pipeline of renewable investments and if so, the details thereof; and
(e) the steps proposed to priorities offshore wind deployment in States facing land constraints
but strong renewable manufacturing and export capacity such as Tamil Nadu?
ANSWER
THE MINISTER OF STATE FOR NEW & RENEWABLE ENERGY AND POWER
(SHRI SHRIPAD YESSO NAIK)
(a) to (c) Government has launched the ‘Viability Gap Funding (VGF) scheme for offshore
wind energy projects’ with total outlay of ₹ 7453 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 upgradation of two ports to meet logistics requirements for offshore wind energy
projects. The viability gap funding earmarked for each 500 MW offshore wind energy projects
off the coast of Gujarat and Tamil Nadu are Rs. 4064 Cr and Rs. 2755 Cr, respectively.
However, the projects capacity can be proportionately reduced in case of VGF found
inadequate or VGF can be utilized for additional capacity in case of savings.
National Institute of Wind Energy (NIWE) has installed floating LiDAR buoy for the wind
resource assessment of Tamil Nadu site. NIWE also carried out Geophysical study for Tamil
Nadu site. The tender for the development of Tamil Nadu offshore wind project is linked to the
outcomes of wind resource assessment and other studies.
Further, NIWE has completed the met-mast based wind resource measurements near
Dhanushkodi. The report has also been published in public domain through NIWE website.
Based on the measurement campaign for one continuous year (October, 2013 to September,
2014), the annual average wind speed is 8.65 meter per second and Wind Power Density is 536
Watt per meter square at 102 meter above sea level for Dhanushkodi.(d) The renewable energy capacity addition and investment in solar and wind sector in the State
of Tamil Nadu during last three financial years are given in Annexure.
(e) Government has taken several steps to develop offshore wind power projects in the country
including Tamil Nadu. These, inter alia, include:
• Notification of ‘Offshore Wind Energy Policy’ in October 2015 to provide framework
for the development of offshore wind energy in the country.
• For initial phase of developments, potential offshore wind zones off the coast of Gujarat
and Tamil Nadu have been identified through meso-scale study.
• Installation of a LiDAR by NIWE off the coast of Gujarat in Nov, 2017 and collection
of 02 years wind data. NIWE has also conducted Geophysical, Geotechnical study,
Rapid EIA study, Oceanographic study (Wave, Tide & Current) for a site equivalent to
1 GW capacity off the coast of Gujarat.
• Geotechnical study at three bore hole locations carried out off Tamil Nadu coast.
Further, 4 LiDARs off Tamil Nadu coast installed for wind resource measurement.
Geophysical study for 500 MW site off TN coast has also been completed.
• Issuance of a ‘Strategy Paper for Establishment of Offshore Wind Energy Projects’ in
July, 2022 indicating various development models.
• The Offshore Wind Energy Lease Rules, 2023 have been notified to regulate the grant
of lease of offshore areas for development of offshore wind energy projects.
• Central Transmission Utility (CTU) has completed the planning for initial 10 GW
offshore transmission capacity (05 GW each off Gujarat and Tamil Nadu coast).
• The Union Cabinet has launched the ‘Viability Gap Funding (VGF) scheme for
offshore wind energy projects’. The scheme guidelines for implementation of “VGF
Scheme for Offshore Wind Energy Projects” issued on 11th September 2024.
• Offshore Wind has been included in the list of activities to be considered for trading of
Carbon Credits under bilateral/co-operative approaches as per Article 6.2 Mechanism
of Paris Agreement.
• Waiver of Inter-State Transmission (ISTS) Charges has been extended for offshore
wind power projects commissioned on or before 31.12.2032 with graded ISTS charges
thereafter.
• Waiver of additional surcharge is granted for electricity produced from offshore wind
projects commissioned up to December, 2032 and supplied to Open Access Consumers
*****Annexure
Referred in reply of part (d) of Lok Sabha Unstarred Question No. 730 to be
answered on 04.02.2026
Renewable energy capacity addition and investment in solar and wind sector in
the State of Tamil Nadu
Financial RE Solar Investment for Wind Investment
Year capacity Capacity solar capacity Capacity for wind
addition addition addition* (Rs. In addition capacity
(In MW) (In MW) Crore) (In MW) addition*
(Rs. In
Crore)
2022-23 1821.55 1669.25 6677.00 150.80 1055.6
2023-24 2063.07 1474.95 5899.80 586.37 4104.59
2024-25 3079.74 1942.20 7768.80 1136.37 7954.59
2025-26 1871.66 1511.23 6044.92 335.43 2348.01
(Upto Dec,
2025)
Total 8836.02 6597.63 26390.52 2208.97 15462.79
*Considering average cost (indicative) of Rs. 4 Crore per MW for solar and Rs. 7
Crore per MW for wind power capacity