Thiruvananthapuram, Jan 6 (IANS): As part of its diversification programme, the National Hydropower Corporation Ltd (NHPC) Monday inked a deal with the Kerala government to set up an 82 MW wind farm in the state's Palakkad district.

"We have identified 500 acres of land in Palakkad district for which the survey also has been completed. They (NHPC) have said that in two years time, the project will become operational," state Power Minister Aryadan Mohammed told reporters after receiving the documents of the deal signed between the NHPC and the Kerala State Electricity Board here.

Currently, the cost for generating one MW of wind energy is estimated to cost around Rs.6 crore and the total project cost of this new wind farm will come to around Rs.500 crore, he said.

"This is being set up under the Built, Operate, Own and Transfer programme and the entire project cost would be brought in by the NHPC and the KSEB will buy the power from them, at a cost to be determined then," said Mohammed.

He also pointed out that some of the land that will be used for setting up this wind farm belongs to the tribal community and adequate income would be shared with the tribal community.

"We propose to share around five percent of the revenue with the tribal community besides giving full ownership rights to their land," added Mohammed.