**Executive Summary**
The document is a response to questions regarding Viability Gap Funding (VGF) for offshore wind projects, answered in Lok Sabha on December 3, 2025. It confirms the launch of the VGF scheme targeting 1 GW offshore wind energy projects. The document also provides information on India's installed electricity capacity, progress towards renewable energy targets, and planned initiatives for offshore wind development, including the Tamil Nadu project tender expected in February 2026.
**Key Points / Main Content**
* **Wind Resource Assessment:**
* National Institute of Wind Energy (NIWE) estimates India's wind power potential at 1164 GW at 150 meters above ground level.
* State-wise details are available in the Annexure.
* **Viability Gap Funding (VGF) Scheme:**
* Government launched VGF scheme for offshore wind energy projects.
* Total outlay: ₹ 7453 crore.
* ₹ 6853 crore for installing 1 GW of offshore projects (500 MW each off Gujarat and Tamil Nadu).
* ₹ 600 crore for upgrading two ports for offshore wind energy logistics.
* Scheme guidelines issued on 11.09.2024.
* **Installed Electricity Capacity (as of 31.10.2025):**
* Total: 505.02 GW.
* Non-fossil sources: 259.42 GW.
* Sector-wise breakdown:
* Thermal: 245.60 GW
* Nuclear: 8.78 GW
* RE (including large Hydro): 250.64 GW
* **Renewable Energy Targets:**
* India aims to achieve 500 GW installed electricity capacity from non-fossil fuel sources by 2030.
* Achieved 50% of cumulative electricity installed capacity from non-fossil fuel sources by June 2025.
* **Wind Capacity Addition:**
* FY 2025-26 (up to October 31, 2025): 3.56 GW.
* FY 2024-25: 4.15 GW.
* **Tamil Nadu Offshore Wind Project:**
* NIWE installed floating LiDAR buoy and conducted geophysical study for wind resource assessment.
* Tender for project development is linked to the outcomes of wind resource assessment and other studies.
* Tender expected to be floated by February 2026.
**Impact Analysis**
**Stakeholder: Ministry of New and Renewable Energy (MNRE)**
* **Impact**: Responsible for implementing the VGF scheme and achieving renewable energy targets.
* **Action Required**: Ensure effective implementation of the VGF scheme, monitor progress towards renewable energy goals, and finalize tender for the Tamil Nadu offshore wind project by February 2026.
**Stakeholder: Project Developers (Offshore Wind Energy)**
* **Impact**: Opportunity to participate in the 1 GW offshore wind energy projects with financial support through the VGF scheme.
* **Action Required**: Review scheme guidelines, prepare proposals for offshore wind projects in Gujarat and Tamil Nadu, and monitor the tender process for the Tamil Nadu project.
**Stakeholder: National Institute of Wind Energy (NIWE)**
* **Impact**: NIWE is responsible for resource assessment.
* **Action Required**: Continue wind resource assessment and study.
**Stakeholder: Ports of Gujarat and Tamil Nadu**
* **Impact**: Upgrading of ports to accommodate for logistics.
* **Action Required**: Review upgrade plans to accommodate logistics.
Key Entities Referenced
Viability Gap Funding (VGF) Scheme for Offshore Wind Energy Projects: Scheme launched to support offshore wind energy projects with financial assistance, targeting 1 GW in the first phase.
Ministry of New and Renewable Energy: The ministry responsible for promoting and developing new and renewable energy sources in India, including the VGF scheme.
National Institute of Wind Energy (NIWE): Institute involved in wind resource assessment and providing data for offshore wind projects.
Gujarat: One of the states (along with Tamil Nadu) where the first phase of offshore wind projects under VGF is targeted.
Tamil Nadu: One of the states (along with Gujarat) where the first phase of offshore wind projects under VGF is targeted.
GOVERNMENT OF INDIA
MINISTRY OF NEW AND RENEWABLE ENERGY
LOK SABHA
UNSTARRED QUESTION NO. 542
ANSWERED ON 03.12.2025
VIABILITY GAP FUNDING FOR OFFSHORE WIND PROJECTS
542. SHRI CHAMALA KIRAN KUMAR REDDY
SHRI EATALA RAJENDER
SHRI SELVAGANAPATHI T.M.
Will the Minister of NEW AND RENEWABLE ENERGY be pleased to state:
(a) whether the National Institute of Wind Energy (NIWE) reported a potential of 1,164 GW
at 150 metres hub height across the country and to unlock new areas and if so, the details
thereof;
(b) whether the Government has launched a Viability Gap Funding (VGF) for offshore wind
projects, targeting 1 GW in the first phase - 500 MW each off Gujarat and Tamil Nadu and if
so, the details thereof;
(c) whether India’s total installed capacity is nearing 500 GW with non-fossil sources
contributing over 257 GW and if so, the details thereof along with the details of present status;
(d) the details of future action plan of the Government for Developed India 2047 and the role
of States/companies in this regard along with the funds sanctioned and spent;
(e) whether it is a fact that 6 gigawatts of new wind capacity is expected to be added by the
end of financial year 2025-26 and if so, the details thereof; and
(f) whether it is true that the tender for the Tamil Nadu offshore wind project is expected to be
floated by February, 2026 and if so, the details thereof?
ANSWER
THE MINISTER OF STATE FOR NEW & RENEWABLE ENERGY AND POWER
(SHRI SHRIPAD YESSO NAIK)
(a) The wind resource assessment conducted by the National Institute of Wind Energy indicates an
estimated wind power potential of about 1164 GW at 150 meter above ground level in the country. The
state-wise details are given in Annexure.
(b) Government has launched the 'Viability Gap Funding (VGF) scheme for offshore wind energy
projects' with total outlay of ₹ 7453 crore, including an outlay of ₹ 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 ₹ 600 crore for upgradation of two ports to meet logistics requirements for
offshore wind energy projects. MNRE has issued Scheme Guidelines for implementation of ‘VGF
Scheme for Offshore Wind Energy Projects’ vide sanction dated 11.09.2024.
(c) As on 31.10.2025, the total electricity installed capacity of the country is 505.02 GW including 259.42
GW from non-fossil sources. The sector wise installed capacity details are as under;
Sector Capacity (in GW)
Thermal (a) 245.60 GW
Nuclear (b) 8.78 GW
RE (including large Hydro)
250.64 GW
(c)
Sub-Total 259.42 GW(Non-Fossil Fuel) (b+c)
Total Electricity Installed
505.02 GW
Capacity (a+b+c)
(d) In line with Hon’ble Prime Minister’s announcement at COP26, Ministry of New and Renewable
Energy is working towards achieving 500 GW of installed electricity capacity from non-fossil fuel
sources by 2030. India has already achieved the milestone of 50 per cent of the country’s cumulative
electricity installed capacity from non-fossil fuel sources during June, 2025 i.e. more than five years
ahead of the 2030 commitment.
(e) During the current FY 2025-26 (01st April, 2025 – 31st October, 2025), the new wind capacity of 3.56
GW has been added in the country. The wind capacity addition in the country during last financial year
(FY 2024-25) was 4.15 GW.
(f) 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.
*****Annexure
S. No. State Wind Power Potential at 150 mtr
agl (GW)*
1 Andhra Pradesh 123.33
2 Gujarat 180.79
3 Karnataka 169.25
4 Madhya Pradesh 55.42
5 Maharashtra 173.86
6 Rajasthan 284.25
7 Tamil Nadu 95.10
8 Telangana 54.71
Total (8 windy States) 1136.71
Other States 27.14
All India Total 1163.85
*Potential is estimated considering the sites having Capacity Utilization Factor (CUF)
more than 25%.