The country's biggest electricity generator NTPC Ltd is planning a foray into wind power with an investment of more than Rs 1,200 crore (Rs 12 billion), seeking to diversify into the renewable energy market.

Other major energy companies like ONGC, HPCL and Tata Power already have a presence in this segment of power generation.

According to NTPC chairman and managing director T Sankaralingam, "We are looking at wind energy projects with a total capacity of 200-250 MW. This would require an investment of over Rs 1,200 crore."

The Navratna PSU, which has an installed capacity of more than 26,000 MW entirely on coal or gas, has been looking to diversify into other energy sources and is already working on hydroelectric projects, besides a few small biomass plants.

Sankaralingam said the company was scouting for sites and the entire capacity could be set up in a single location. The company would be working with Asian Development Bank and may also rope in a private partner for the new venture, he added.

"We may set up a joint venture. We are in the process of working out details regarding the equity structure," added Sankaralingam.

NTPC's proposed venture comes at a time when a number of energy companies in India and abroad have already forayed into renewables, particularly wind and solar. India is the world's fourth largest wind energy producer with an installed capacity of more than 7,000 MW, behind only Germany, Spain and the United States.

Prominent energy firms in renewables include British oil firm BP, India's Oil and Natural Gas Corp, state refiner HPCL, Reliance Energy and Tata Power Company. While BP and Tatas have a JV named Tata BP Solar, TPC is also setting up a 100 MW wind project in Maharashtra with a loan from ADB.

While REL has set up a 8.3 MW wind project, HPCL is looking at a 100 MW unit and ONGC is planning a 150 MW unit at different sites in southern and western India.