Centre starts 1 GW tender for Gujarat and Tamil Nadu as developer caution tempers ambitious targets  

The Union Ministry of New and Renewable Energy (MNRE) has announced a renewed offshore wind drive with a Rs 7,500 crore viability gap funding (VGF) scheme to attract private investment into the sector. The plan includes a 1-gigawatt (GW) tender for projects off the coasts of Gujarat and Tamil Nadu, as India seeks to expand its clean energy portfolio beyond solar and onshore wind.  

The initiative was unveiled during the seventh edition of Windergy in Chennai, where the government reaffirmed its intent to make offshore wind a central pillar of India’s decarbonisation strategy. Tamil Nadu has agreed to procure offshore wind power at a premium tariff to help offset the high costs associated with such projects.  

Despite the new funding support, industry participation remains uncertain. Developer interest in offshore wind has been weak, with two major tenders totalling 4.5 GW cancelled earlier this year due to lack of bids, according to data from the Solar Energy Corporation of India. Analysts attribute the hesitation to high capital requirements, logistical challenges, and the absence of supporting infrastructure such as specialised vessels and port facilities.  

The MNRE has identified a potential of 36 GW of offshore wind capacity off the Gujarat coast alone, but realising this potential will depend on improving financial viability and regulatory clarity. The government hopes that the new VGF allocation will help bridge this gap and attract both domestic and international developers.  

Globally, the offshore wind industry is under strain. The International Energy Agency (IEA) has revised its five-year growth forecast downward by more than 25 per cent, citing rising costs, disrupted supply chains, and delayed projects in key markets including Europe, Japan, and the United States. Several major developers have scaled back their 2030 targets amid tightening financing conditions and policy uncertainty.  

India’s push for offshore wind comes at a critical time, as the country aims to diversify its renewable mix and reach 500 GW of non-fossil energy capacity by 2030. While the Rs 7,500 crore plan marks a significant policy step, sector experts believe that stronger infrastructure support, streamlined approvals, and stable tariffs will be necessary to translate ambition into capacity on the ground.