After successfully starting its pilot wind energy project in Gujarat, Oil and Natural Gas Corporation is now planning to invite bids for its second pilot project in Karnataka.

The PSU major plans to generate 1000-2000 mw from wind energy after the successful completion of these projects.

ONGC [Get Quote] will invest nearly Rs 600 crore in the first phase of its wind energy foray for generating nearly 15000 mw of power. The total installed capacity for wind energy in India was about 7114 mw, experts said.

The public sector giant had recently entered the wind energy sector by signing an agreement with Suzlon Energy [Get Quote] for its pilot project in Gujarat to produce 50 mw for own consumption, mainly in Surat, Mehsana, Ahmedabad and Baroda, where it has facilities.

The total cost of the Gujarat project is Rs 307 crore. Power produced from this project would be taken to ONGC's installations though an arrangement with the Gujarat Electricity Board, the officials at the company's headquarters said.

The company will float tenders in June-July this year for its second pilot project in Karnataka, where it plans to invest Rs 300 crore.

The company is likely to sell the power produced from the project in the southern state itself. The location for Karnataka's project will be finalised at a later stage.

While the Gujarat project would be completed in May-June this year, the Karnataka plant was likely to be completed in March 2009, said Anoop Kumar, group general manger-head technical services, ONGC.

The company will set up 34 turbine machines, each having a capacity to produce 1.5 mw, at both the wind farms in Gujarat and Karnataka. It has roped in consultants -- M P Wind Farms and IL&FS -- for executing these projects.

ONGC, which produces 84 per cent of the country's crude oil and natural gas, is the first public sector company to enter the wind energy sector.

"These projects are an initiative of ONGC towards fulfilling its commitment to generate environment-friendly and pollution-free energy from renewable sources," said Kumar.