Power producer Indian Energy has entered into an option agreement with Suzlon Energy for the construction of a 50.4MW wind farm at Tejuva in the Indian state of Rajasthan.

This agreement for the Tejuva project is the first option signed under the terms of a memorandum of understanding that was signed between the companies in May 2010.

The agreement provides for the project to be constructed and commissioned by Suzlon under a turnkey contract with construction expected to commence prior to 31 December 2010 and full commissioning scheduled by July 2011.

This will give Indian Energy a total annual power generating capacity of 91.7MW.

Indian Energy has submitted an application to the State Bank of India, its existing project finance lender to provide the finance for the Tejuva project.