The Indian government has signed a memorandum of understanding with a group of companies to build the country's first ever offshore wind power project as part of New Delhi's pledge to increase renewable energy sources.
The 100 megawatt wind farm plant will lie off the coast of the western state of Gujarat and be partly financed by state subsidies, the ministry of new and renewable energy said in a statement on Wednesday.
A consortium of partners including power producer NTPC Ltd and Power Grid Corp. will lead the project.
Renewable energy sources such as solar and onshore wind farms currently generate less than 2 percent of India's energy needs, with coal fuelling the generation of around three fifths and gas and hydropower most of the remainder.
Prime Minister Narendra Modi, who oversaw the launch of several solar power plants in Gujarat when he was chief minister of the state, has said India needs to expand its renewable energy capacity to help meet rapidly growing demand.