GAIL signs initial pact to set up 1 GW renewable energy projects in Karnataka

State-owned gas utility GAIL (India) Ltd has signed a memorandum of understanding (MoU) with the Karnataka government to explore the setting up of renewable energy projects of up to 1 gigawatt (GW) in the state.

"Under the MoU, the Government of Karnataka would facilitate GAIL to obtain necessary permissions/registrations/approvals/clearance/ incentives, etc., from the concerned departments of the state, as per the prevailing policies/rules and regulations of the state government. GAIL intends to set up renewable energy projects of up to 1 GW within a period of five years," the company said in a statement.

GAIL, however, did not disclose financial details of the project.

The company is targeting net-zero carbon emissions for its operations by 2035, and renewable energy projects are part of the plan for achieving that goal.

The MoU was signed in Bengaluru on May 9, 2025, in the presence of MB Patil, Karnataka's Minister for Large and Medium Industries and Infrastructure Development, and KJ George, Karnataka's Minister for Energy, by S Selvakumar, Principal Secretary in the state's Commerce & Industries Department, and GAIL Executive Director (SD & Renewables) Parivesh Chugh.

Speaking on the occasion, Patil said, "We welcome GAIL's strategic interest in Karnataka. This MoU reaffirms our commitment to facilitating clean energy investments while driving industrial growth. Karnataka's policy ecosystem, skilled workforce, and land availability make it a natural partner for companies focused on sustainability".

"As a leader in renewable energy, Karnataka is pleased to collaborate with GAIL in achieving India's clean energy transition. This partnership will strengthen our state's position as a green energy hub and contribute to employment generation and infrastructure development," George added.

Shares of GAIL closed 1.45% higher at ₹181.60 apiece on the NSE on Friday.