India plans to restart its offshore wind auction process after cancelling two tenders in 2025 due to limited developer interest. A new Viability Gap Funding scheme supports 1 GW of offshore wind, split equally between Gujarat and Tamil Nadu, with ₹7,500 crore VGF. The Centre plans to float bids for two 500 MW offshore wind projects by February 2026. Tamil Nadu's 1,076-km coastline has over 35 GW offshore potential with wind speeds of 8-10 m/s. India has long-term auction targets of 30-37 GW offshore wind by 2030.
India's Offshore Wind Energy Push: 1 GW Tender with ₹7,453 Crore Outlay
AQuick answer
India to restart offshore wind auctions with ₹7,500 crore VGF for 1 GW split between Gujarat and Tamil Nadu.
Key facts
- India plans to restart offshore wind auction process after cancelling two tenders in 2025 due to limited developer interest.
- A new Viability Gap Funding scheme supports 1 GW of offshore wind split equally between Gujarat and Tamil Nadu with ₹7,500 crore VGF.
- Centre plans to float bids for two 500 MW offshore wind projects by February 2026.
- Tamil Nadu's 1,076-km coastline has over 35 GW offshore potential with wind speeds of 8-10 m/s.
- India has long-term auction targets of 30-37 GW offshore wind by 2030.
Mains angle
Q: Examine the role of Viability Gap Funding in accelerating India's offshore wind energy push, and evaluate the strategic importance of Tamil Nadu and Gujarat coastlines for the 2030 target.
Answer (50 words):
India is restarting offshore wind auctions after cancelling two 2025 tenders. A ₹7,500 crore Viability Gap Funding scheme supports 1 GW split equally between Gujarat and Tamil Nadu through two 500 MW projects bid by February 2026. Tamil Nadu's 1,076-km coastline offers over 35 GW potential, targeting 30-37 GW by 2030.
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Linked questionMedium
What is the Viability Gap Funding (VGF) allocated for India's 1 GW offshore wind energy programme?
Explanation · Correct answer C
The Union Cabinet approved a Viability Gap Funding scheme for offshore wind energy projects with a total outlay of ₹7,453 crore. This includes ₹6,853 crore for installation and commissioning of 1 GW offshore wind projects, 500 MW each off Gujarat and Tamil Nadu, and ₹600 crore for port upgradation.
Source: Outlook Business
Frequently asked questions
What Viability Gap Funding scheme is supporting India's offshore wind energy push and how much is allocated?
India's new **Viability Gap Funding (VGF) scheme** supports **1 GW of offshore wind** split equally between **Gujarat and Tamil Nadu**, with **₹7,453 crore total outlay**. The Centre plans to float bids for **two 500 MW offshore wind projects by February 2026**, restarting the auction process after cancelling two tenders in 2025.
What is India's long-term offshore wind energy target and what is Tamil Nadu's offshore potential?
India's **long-term target is 30-37 GW of offshore wind by 2030**. **Tamil Nadu's 1,076-km coastline** has **over 35 GW offshore potential** with wind speeds of **8-10 m/s**. The new VGF scheme offers **₹7,500 crore** to support **1 GW offshore wind** split equally between Gujarat and Tamil Nadu.
Why did India cancel its earlier offshore wind tenders in 2025 and what is the new approach for 2026?
India cancelled **two offshore wind tenders in 2025 due to limited developer interest**. The new approach for 2026 introduces a **Viability Gap Funding (VGF) scheme** of **₹7,500 crore** to make projects financially viable, covering **1 GW split between Gujarat and Tamil Nadu** in two **500 MW bids** planned by February 2026.
How is India's 1 GW offshore wind VGF project divided between Gujarat and Tamil Nadu?
India's **1 GW offshore wind project** under the new VGF scheme is **split equally — 500 MW for Gujarat and 500 MW for Tamil Nadu**. The scheme comes with **₹7,500 crore VGF**. Bids for both **500 MW projects** were planned by **February 2026**. Tamil Nadu's coastline alone has over **35 GW offshore potential** with wind speeds of **8-10 m/s**.
What is the Viability Gap Funding scheme in the context of India's offshore wind energy development in January 2026?
The **Viability Gap Funding (VGF) scheme** for India's offshore wind sector provides **₹7,500 crore** in government support to bridge the financial gap and make **1 GW of offshore wind projects commercially viable**. Split between **Gujarat (500 MW) and Tamil Nadu (500 MW)**, this restarts India's offshore wind auction process after two failed tenders in 2025. India aims for **30-37 GW offshore wind by 2030**.
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