As India continues to grow in all aspects, the need for energy in India is at an all time high. With the government now looking at avenues other than the conventional energy sources, Wind power generation has come as a big help to support India's energy cause. India's wind power generation has witnessed a jump of over 48 % from 3,595 MW in 2004-05 to 5,340 MW in 2005-06.

According to the Minister of State for Non-Conventional Energy Sources Vilas Muttemwar, of the total 5,340 MW installed generation capacity in the country, Tamil Nadu accounts for more than half.

The minister said that the government was encouraging setting up of wind power projects in all potential states by providing several incentives.

These include concessional import duty on certain components of wind electric generators, excise duty exemption, 10 years' tax holiday on income generated from wind power projects, benefits of  accelerated depreciation and loan from the Indian Renewable Energy Development Agency (IREDA) and other financial institutions.

The potential of wind power generation in the country is estimated at around 48,000 MW.