GAIL and Karnataka Government Sign MoU on 1 GW Renewable Energy Development

GAIL (India) Limited has entered into an agreement with the Government of Karnataka to explore the development of renewable energy projects with a total capacity of up to 1 Gigawatt (GW). The Memorandum of Understanding (MoU) was signed on May 9, 2025, in Bengaluru.

As of 10:32 AM on May 14, 2025, GAIL (India) Limited share price was trading at ₹187.34, a 1.91% increase, with a 52.15% decline over the past six months and a 82.40% drop over the past year.

Project Areas

The scope includes solar (ground-mounted, rooftop, and floating), wind, and energy storage solutions. The company will also explore opportunities within Karnataka’s existing solar parks.

The projects will involve an investment of approximately ₹5,000 crore. GAIL aims to set up the proposed renewable energy capacity over a 5-year period.

Land and Infrastructure Support

Land required for the projects will be acquired through the Karnataka Industrial Areas Development Board (KIADB). In addition, GAIL will lease land directly from farmers. According to reports, local farmers have expressed willingness to provide additional land for future phases.

The Karnataka government will facilitate required approvals, clearances, registrations, and incentives as per state rules and policies. This includes coordination across departments for faster implementation.

Read more: GAIL Establishes Finance Subsidiary in GIFT City for Global Operations

Signatories and Representatives

The MoU was signed by Dr. S. Selvakumar, Principal Secretary, Commerce & Industries Department, Government of Karnataka, and Parivesh Chugh Singh, Executive Director (SD & Renewables), GAIL. Ministers M.B. Patil (Large and Medium Industries) and K.J. George (Energy) were present at the signing. T.D. Rajegowda, Chairman of Karnataka Renewable Energy Development Ltd (KREDL), was also in attendance.

Existing Renewable Energy Infrastructure

Karnataka currently operates renewable energy projects like the Pavagada Solar Park, which generates about 2,050 MW annually. The state plans to expand on this capacity through upcoming projects.

Conclusion

The agreement allows GAIL to begin work on setting up renewable energy projects in Karnataka. The company will work with various state departments to acquire land, obtain approvals, and develop the proposed infrastructure over the next five years.

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