Kerala signed an agreement with National Hydroelectric Power Corporation (NHPC) Ltd. on Monday to set up a wind farm in Palakkad district. The project will mark the corporation’s foray into the wind power sector.

After the agreement was signed, Electricity Minister Aryadan Mohammed told presspersons that the plan was to have a wind farm of 82-MW capacity in the Kottathara and Nallasingam areas of Attappady in the first phase of the project, which envisaged a wind farm spread over 500 acres, most of which was revenue land. A “small portion” would be acquired from tribal people on lease. The tribal people would be given five per cent of the income from the project as well. The project cost, NHPC officials said, would be around Rs. 500 crore at the rate of about Rs. 5-6 crore a MW.

The Revenue and Survey departments, along with ANERT, had conducted preliminary surveys to identify areas for the project at Agali, Kottathara, Sholayur and Puthur for the future phases. The project would be expanded to other areas in Kerala, the Minister said adding that the power generated from it would be bought by the Kerala State Electricity Board at rates fixed by the State Electricity Regulatory Commission.