Welspun Energy Ltd., an independent Indian electricity producer, said it will invest $1 billion to develop two wind energy projects in the Indian state of Karnataka by 2016.

Welspun Energy is a subsidiary of the $3.5 billion Welspun Group, a steel company. Welspun Energy signed a memorandum of agreement with the government of Karnataka in south west India for the construction of two wind power plants, a 100-megawatt plant and a 750-MW project planned for the districts of Bijapur, Chitradurga and Belgaun.

The projects are estimated to supply an approximately 9 million homes in India when finished.

"We want to help create a greener empowered India and through our renewable energy projects, Welspun Energy is effecting a change on the ground. With the signing of these two projects we have moved exponentially forward in this direction," said Welspun's co-founder and managing director Vineet Mittal.

Karnataka generates about 6.7 percent of India's electricity. It has a potential 11,500 MW wind energy capacity, making it the third favorable location in the country for wind energy projects. There are also reportedly about 10,000 potential solar power projects in the state.

India has been highly dependent on coal and oil in meeting its energy demand, and its government has been looking for alternative energy resources that will help the country meet its energy needs while cutting down on greenhouse gas emissions.– EcoSeed Staff