The Government is planning to set up wind and solar farms in Rajasthan and Tamil Nadu under Phase-I of the green energy corridors project.

Phase-I of the green energy corridors project is estimated to cost Rs 18,000 crore of which Rs 10,000 crore will be invested in the two states. The entire green energy corridors project is estimated to cost Rs 43,000 crore and is intended to add 30,000 MW to the national grid by 2020.

Initially, funding for the project will be finalised by the end of October 2013. The project is expected to receive first tranche of Rs 2,500 crore from Germany as part of the country's commitment for technical and financial assistance of euro one billion (approx Rs 8,368 crore) for the green energy corridors under the Indo-German bilateral development cooperation programme.

The sub-group appointed by the government is in talks with the PowerGrid and the National Cooperative Consumers Federation of India to fund the remaining part of the initial phase.

The green energy corridors project will comprise both, interstate and intrastate schemes for evacuation of power from wind and solar projects. Integration of these projects with the national grid will require intrastate grid upgradation and interstate networks that will be taken up by PowerGrid and the state utilities, respectively.