Engineering giant Siemens plans to manufacture wind turbines in India as part of plans to expand existing production capacity.

About INR 500 crore ($77m) will be earmarked for setting up a high end wind turbine manufacturing facility, the company said.

Siemens managing director for India, Armin Bruck was quoted by The Hindu newspaper as saying that the company has identified sites in the states of Tamil Nadu and Gujarat.

The wind turbine manufacturing project forms a part of plans by the company to invest INR1600 crore ($247m) over the next three years in expanding its existing production base in India.

The investment will cover research and development activities and augment manufacturing capacity for products across an array of industries.

The wind turbine manufacturing facility is expected to start operation by 2012 with an initial capacity aggregating to 200MW.