The Union Minister for New & Renewable Energy and Power has informed about the steps taken to attract Foreign Direct Investment into the renewable energy sector of India.
Under the extant Foreign Direct Investment (FDI) policy of the Government of India, FDI in renewable energy sector is permitted up to 100% under the automatic route.
The Government has taken several steps to attract investments, including FDI, in the renewable energy sector, some of which are given below:
- Setting up of Project Development Cell for attracting and facilitating investments.
- Declaration of trajectory for Renewable Purchase Obligation (RPO) up to the year 2029-30,
- Setting up of Ultra Mega Renewable Energy Parks to provide land and transmission to RE developers for installation of RE projects at large scale,
- Laying of new transmission lines and creating new sub-station capacity under the Green Energy Corridor Scheme for evacuation of renewable power,
- Launch of schemes such as Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM), Solar Rooftop Phase-II, 1200 MW CPSU Scheme Phase II, etc.,
- Launch of National Green Hydrogen Mission with an aim to make India a global hub for
production, utilization and export of Green Hydrogen and its derivatives, - Notification of Promoting Renewable Energy through Green Energy Open Access Rules 2022,
- Launch of Green Term Ahead Market (GTAM) to facilitate sale of Renewable Energy Power through exchanges,
- Release of Standard Bidding Guidelines for tariff based competitive bidding process for procurement of Power from Grid Connected Solar PV and Wind Projects,
- Waiver of Inter State Transmission System (ISTS) charges for inter-state sale of solar and wind power for projects to be commissioned by 30th June, 2025,
- Notification of standards for deployment of solar photovoltaic system/devices,
- Issue of orders that power shall be dispatched against Letter of Credit (LC) or advance payment to ensure timely payment by distribution licensees to RE generators.
As per information available with the Department for Promotion of Industry and Internal Trade (DPIIT), the country has received a total FDI Equity investment amounting to USD 6,137.39 Million in the renewable energy sector, during the last three financial years and the current financial year (till 30.09.2023).
This information has been given by the Union Minister for New & Renewable Energy and Power Shri R. K. Singh, in a written reply to a question, in Rajya Sabha on December 19, 2023.
