"Under the policy, there will be energy mapping of the country and locations with high potential to be identified," said energy minister Piyush Goyal.
"After that, the government will seek required approval from various departments, like space, defence and shipping, before finally putting these projects for bidding," he said.
India has 7,600 kilometres of coastline and good wind resources, particularly on the western coast.
The government's announcement was welcomed by Suzlon chairman Tulsi Tanti. "India has enormous offshore wind energy potential and cabinet approval is set in the right direction to unlock this opportunity," he said.
Suzlon is working on a pilot project off the coast of Gujurat in the north-west of the country. A technical feasibility study has been completed, and construction is expected to begin next year.