Karnataka, GAIL ink Rs 5,000 cr deal to set up 1 GW renewable energy projects

Bengaluru, May 9 (PTI) The Karnataka government and GAIL (India) Ltd, a public sector enterprise in the natural gas sector, signed an MoU on Friday to establish approximately 1 GW of renewable energy (RE) capacity in the state, officials said.

The proposed investment for this initiative is estimated at Rs 5,000 crore, they said.

Speaking on the occasion, State Minister for Large and Medium Industries and Infrastructure Development M B Patil said the MoU reaffirms Karnataka’s position as a preferred destination for clean and sustainable energy investments.

"GAIL can initiate the projects by acquiring land from farmers on a lease basis, or we will facilitate land allocation through KIADB (Karnataka Industrial Areas Development Board). Necessary approvals, registration, and concessions will be provided swiftly," he said in a statement.

He added that the MoU enables GAIL to explore and develop a diversified renewable energy portfolio, including ground-mounted solar, rooftop solar, floating solar, wind energy, and required storage solutions.

"GAIL is also keen to acquire suitable land parcels within Karnataka's solar parks to accelerate project implementation under its dedicated capital expenditure plan," Patil added.

He emphasised that the state’s favourable policy framework, skilled workforce, and land availability make it an ideal partner for companies focused on sustainability.

According to State Energy Minister K J George, the partnership will strengthen Karnataka’s standing as a green energy hub while generating employment and boosting infrastructure development.

He added that the MoU marks the beginning of a long-term collaboration between GAIL and the Government of Karnataka to build a cleaner, greener energy future that contributes meaningfully to the state’s economic growth and climate goals.

Highlighting Karnataka’s solar potential, the Minister noted that the Pavagada Solar Park already generates 2,050 MW annually, and local farmers are ready to offer an additional 10,000 acres for similar projects. PTI AMP SSK ROH