GAIL Partners with Karnataka to Develop 1 GW Renewable Energy Capacity
Strategic MoU Aims to Boost State’s Green Energy Leadership with ₹5,000 Crore Investment
Bengaluru, May 9 – In a significant step toward India’s renewable energy transition, GAIL (India) Limited has signed a Memorandum of Understanding (MoU) with the Government of Karnataka to establish 1 gigawatt (GW) of renewable energy (RE) capacity in the state. The proposed investment of ₹5,000 crores underscores Karnataka’s growing prominence as a hub for sustainable energy projects.
The agreement, signed in the presence of Shri M.B. Patil, Minister for Large and Medium Industries and Infrastructure Development, and Shri K.J. George, Minister for Energy, solidifies Karnataka’s role in India’s clean energy ambitions. Senior GAIL officials, including Parvesh Chug, Executive Director (Renewable Energy), and Sumit Kishore, Executive Director (Marketing), were also present at the event.
GAIL’s Renewable Push Aligns with Net-Zero Goals
GAIL, India’s leading natural gas company, has committed to 100% reduction in Scope 1 and Scope 2 emissions by 2035, aligning with national net-zero targets. To achieve this, the firm requires 3,500 MW of RE capacity for captive consumption. Currently, its renewable portfolio stands at 135 MW, including 38.1 MW of wind energy already operational in Karnataka.
The new MoU enables GAIL to expand its footprint in the state through:
✔ Ground-mounted solar projects
✔ Rooftop solar installations
✔ Floating solar plants
✔ Wind energy initiatives
✔ Energy storage solutions
The company will also explore land acquisition within Karnataka’s Solar Parks to fast-track project execution.
Karnataka: A Preferred Destination for Green Investments
Speaking at the signing ceremony, Shri M.B. Patil emphasized Karnataka’s readiness to support clean energy ventures:
“This MoU reaffirms our commitment to facilitating sustainable investments while driving industrial growth. Karnataka’s progressive policies, skilled workforce, and land availability make it an ideal partner for companies like GAIL.”
Echoing this sentiment, Shri K.J. George, Minister for Energy, highlighted the state’s leadership in renewables:
“As a pioneer in clean energy, Karnataka is proud to collaborate with GAIL in advancing India’s green transition. This partnership will enhance our position as a renewable energy hub and create jobs and infrastructure.”
Long-Term Collaboration for a Sustainable Future
The MoU marks the beginning of a strategic alliance between GAIL and Karnataka, aimed at:
🔹 Accelerating RE adoption
🔹 Supporting state and national climate goals
🔹 Boosting economic growth through green investments
Key officials present at the meeting included Dr. Selvakumar S., Principal Secretary (Industries), Smt. Gunjan Krishna, Commissioner for Industrial Development, and K.P. Rudrappaiah, Managing Director of Karnataka Renewable Energy Development Ltd.
Why This Matters
✅ Economic Impact: ₹5,000 crore investment to spur local employment and infrastructure.
✅ Environmental Benefits: 1 GW RE capacity will offset ~2.5 million tons of CO₂ annually.
✅ Policy Momentum: Reinforces Karnataka’s status as India’s top renewable energy state (with ~15 GW installed capacity).
With this partnership, GAIL and Karnataka are poised to play a pivotal role in India’s journey toward energy security and decarbonization.
Key Quotes
From Government:
➔ “This partnership proves Karnataka is India’s renewable energy lab. We’re offering land, policies and skilled labor to turn green visions into reality.”
– M.B. Patil, Minister for Industries, Karnataka
➔ *”Every 100 MW we add creates ~500 jobs. GAIL’s 1 GW project will transform local economies while powering India’s net-zero transition.”*
– K.J. George, Energy Minister, Karnataka
From GAIL:
➔ “We’re pivoting from gas to renewables without losing energy security. Karnataka’s solar parks will host 40% of our 2035 green capacity target.”
– Parvesh Chug, ED (Renewables), GAIL
Q&A: Quick Facts
Q: Why Karnataka for GAIL’s RE expansion?
A: Karnataka leads India with:
-
15 GW installed RE capacity
-
300+ sunny days/year
-
Pre-approved solar park land banks
Q: What’s the timeline?
A: Phase 1 (500 MW) by 2026; full 1 GW by 2028
Q: How will this impact consumers?
*A: Expected to reduce industrial power costs by 18-22% for GAIL’s Karnataka units*
