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Karnataka Signs ₹50B Green Energy Deal With GAIL

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With a ₹50 billion boost, Karnataka and GAIL join forces to add 1000MW of renewables—driving clean energy, job growth, and climate goals.

In a major push towards clean energy, the Karnataka government signed a memorandum of understanding (MoU) with the Gas Authority of India Limited (GAIL) last week to develop 1000MW of renewable energy in the state. The project is expected to attract an investment of ₹50 billion over the next five years.

The agreement marks a significant step for GAIL, which aims to eliminate all direct (Scope 1) and indirect (Scope 2) emissions by 2035. To meet this target, the company requires 3500 MW of renewable capacity for internal consumption.

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At present, GAIL operates only 135 MW of renewable energy, including 38.1 MW of wind power within Karnataka. Under the MoU, the company will explore multiple energy sources—such as ground-mounted, rooftop, and floating solar, as well as wind and storage technologies. It will also seek land in designated solar parks to fast-track these projects.

Karnataka’s Minister for Large and Medium Industries, MB Patil, assured support in land acquisition, either through direct leasing from farmers or via the Karnataka Industrial Areas Development Board (KIADB). He emphasised that the state would expedite all approvals to facilitate quick implementation.

Energy Minister KJ George highlighted the MoU’s role in driving India’s green energy ambitions. Referring to the Pavagada Solar Park—already generating 2050MW annually—he revealed plans for expansion, with local farmers agreeing to provide 10,000 more acres.

George said the initiative would create jobs and strengthen infrastructure, reinforcing Karnataka’s position as a hub for renewable energy.

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Shubha Mitra
Shubha Mitra
Shubha Mitra is an Assistant Editor at EFY, keenly interested in policies and developments shaping the electronics business.

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