The Solar Energy Corporation of India (SECI) has issued a notice inviting tender to carry out selection of offshore wind power developers for allocation of sea-bed lease rights for projects in India.

The scope of work of the tender includes survey and development activities, designing, building, financing, constructing, commissioning, operating, maintaining, and decommissioning of offshore wind power projects off the coast of Tamil Nadu, India through international competitive bidding.

The selected offshore wind power developer will have to develop the transmission system to deliver the power at the offshore substation, grid connectivity, and long-term access to the grid.

The energy generated from offshore wind power projects will be consumed in captive mode, sold to third parties, or the power exchange.

SECI in its documents noted that the tender was drafted according to the 'Strategy Paper for Establishment of Offshore Wind Energy Projects' in India issued by the Ministry of New and Renewable Energy, and the same will be issued shortly.

Finance Minister (FM) Nirmala Sitharaman in her Interim Budget speech on Thursday also mentioned that the government will be providing viability gap funding to offshore wind power projects for an initial capacity of one gigawatt.

"Focus on supporting 1 GW off-shore wind capacities through viability gap funding is likely to support longer term growth of the wind sector, which has lagged behind solar in per-annum capacity addition," said Ankit Hakhu, director, CRISIL Ratings, while commenting on the the FM's VGF announcement in the Budget.

He, however, added that one of the challenges for wind sector growth is availability of sites with high wind potential. Opening up offshore sites such as sea-beds and providing funding support has the potential to improve supply and be a tailwind for growth.