The western Indian state of Gujarat plans to spend 250 million rupees ($4.8 million) to help develop the nation’s first project to produce power from ocean tides.
Gujarat approved the funding along with an additional 100 million rupees for a pilot geothermal power project in its budget for the financial year that started April 1, D.J. Pandian, the state’s principal energy secretary, said today.
“After we see how these pilot projects do, then we’ll take a look at developing a policy to attract more investment,” Pandian said in an interview in Gandhinagar.
The state may work with the International Finance Corp., the World Bank’s private-sector financing arm, which is interested in supporting a tidal-energy project with a loan or equity investment, he said.
Atlantis Resources Corp., a tidal-turbine maker backed by Morgan Stanley (MS) (MS), is developing a marine energy project in the Gulf of Kutch with the Gujarat Power Corp. with an initial capacity of 50 megawatts.