The country today has an installed capacity of 4,907 MW and a survey has identified 650 locations with potential of setting up wind farms in the country. Of this 216 have been found wind farm suitable, he said.
This fiscal, 2,760 MW of wind power installations are expected to be set up, he said. The highest 715 MW would come up in Karnataka, followed by 645 MW in Tamil Nadu.
Gujarat will see 500 MW more wind power generation capacity and units of 300 MW each would come up in Maharashtra and Rajasthan.
"The Gujarat government has planned to reach a target of 4,000 MW of wind power capacity in the state in the coming years," he said. "The state has a potential of around 10,600 MW of wind power. As on March 31, 2010, wind power capacity of 1,860 MW has been set up," he said.
Asked about the generation cost, he said power generated from wind costs about Rs 3.56 per unit while the same from solar energy was several times more expensive at Rs 17-18 per unit.
Abdullah said the government was giving two sets of incentives to companies wanting to set up wind farms.
Under depreciation-linked incentives, 80 per cent accelerated depreciation on equipments, 10-year tax holiday, concessional customs duty on select equipment imported and excise duty exemption are given. The second set of incentive is generation linked.
Once generation linked incentive was introduced recently, companies were given an option to continue with their present depreciation-linked scheme or migrate to the new incentive scheme, he added.