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GAIL to set up 1 GW renewable energy capacity in Karnataka

The state-owned company will investment of Rs 5,000 crore over the next five years

May 09, 2025 / 17:20 IST
GAIL inks MoU with Karnataka government to develop 1 GW RE

The Karnataka government on May 9 signed a memorandum of understanding (MoU) with Gas Authority of India Limited (GAIL) to set up  1,000 MW (1 gigawatt) renewable energy capacity in the state with an investment of Rs 5,000 crore over the next five years.

GAIL, aiming for 100 percent reduction in Scope 1 and 2 emissions by 2035, needs around 3,500 MW of renewable energy for captive use.

"With only 135 MW in its current portfolio — including 38.1 MW of wind energy in Karnataka — the company plans to scale up operations in the state. The MoU enables GAIL to explore ground-mounted, rooftop, and floating solar, wind energy, and storage projects, while also seeking land in Karnataka’s solar parks to fast-track implementation" GAIL said in a statement.

Speaking on the occasion, Karnataka Minister for Large and Medium Industries MB Patil said GAIL could either lease land directly from farmers or be allotted land through the Karnataka Industrial Areas Development Board (KIADB). He assured that all necessary approvals, including those for land acquisition and statutory clearances, would be expedited to facilitate the project.

“We will ensure maximum investment in the renewable energy sector. This is vital for the state’s industrial growth,” Patil said. He added that Karnataka remains an attractive destination for eco-friendly energy investments due to its conducive business environment, skilled workforce, and land availability.

Energy Minister KJ George said the MoU would further accelerate India’s green energy transition. Citing the example of the Pavagada Solar Park, which currently generates 2,050 MW of solar and wind energy annually, George noted that the park is set for expansion as farmers in the region have agreed to provide an additional 10,000 acres of land.

He added that the renewable energy sector would play a significant role in generating employment and developing infrastructure across the state.

“This marks the beginning of a long-term partnership between the state government and GAIL. It will support both economic growth and Karnataka’s climate goals,” George said.

Moneycontrol News
first published: May 9, 2025 05:20 pm

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