Since in an induction generator pf is leading because of the capacitor used to excite the windings, Is it possible to apply power factor correction techniques here.
A unity pf induction generator is essentially an induction generator that has no reactive losses. This means that for such a generator, Watt=VA (PF=WATT/VA). This is not possible because at the heart of conversion of mechanical power to electrical power is reactive power. Reactive power is essentially what conveys real electrical power to loads. Similarly for induction motors, it is not possible to have unity pf because of eddy current and hysteresis losses; and conductor resistive losses.
In practice, this is not possible because the power factor is related to the distortion factor and PFC systems use semiconductor switches that increase the total harmonic distortion (THD).