Green Infra Ltd., an Indian wind-farm developer backed by IDFC Private Equity, is in talks with at least two investors to raise $150 million.

The funds raised will be used to increase generation capacity to 1 gigawatt from 295 megawatts in two years, Chief Executive Officer Shivanand Nimbargi said in a phone interview from New Delhi. The company may consider an initial public offering in 2015, he said.

India, the third-biggest wind market, is attracting investments as the cost of wind power declines and fossil-fuel imports increases, making renewable energy more competitive with coal. Developers’ bids in auctions for coal-fired power stations have ranged from $49 to $78 a megawatt-hour, compared with tariffs for wind farms between $66 and $105 a megawatt-hour, according to Bloomberg New Energy Finance.

Green Infra, which bought BP Plc (BP/)’s Indian wind-energy businesses in 2009, has 270 megawatts of wind farms and 25 megawatts of solar plants in the country, Nimbargi said. BP’s unit included about 100 megawatts of that total.

Copyright 2013 Bloomberg

Lead image: Wind farm via Shutterstock