Uttarakhand government will soon establish its first wind energy project with a capacity of 2 Mw at Bacherikhar area of Tehri district, state assembly was informed today.

While replying to a question, Alternative Energy Minister Rajendra Singh Bhandari said Bacherikhal area in Tehri district has measured wind velocity of 18 km per hour and government would soon start work on it.

In this regard, the minister said fund allocation for the project has been made in the budget for 2010-11 and power production cost from the project would come around Rs 5.27 per unit.

Stating that state government is committed to utilize the alternative sources of energy for producing power, Bhandari said private developers of the wind projects would be given exemption from depositing royality to the state exchequer.

The minister further said the government has fixed a target of producing 1000 Mw of power till 2020, utilizing various renewable energy sources.