India received a total FDI equity investment of $6,137.39 million in the renewable energy sector in the last three financial years, the Union Minister for New & Renewable Energy and Power, R. K. Singh states in written response to a question in Rajya Sabha.
He outlined the efforts taken by the government to attract Foreign Direct Investment (FDI) into India's renewable energy sector. The existing FDI policy of the Indian government permits up to 100% investment in the renewable energy sector under the automatic route.
In a proactive move to bolster the renewable energy sector in India, the government has implemented a comprehensive strategy to attract investments, particularly FDI.
“The establishment of a ‘Project Development Cell’ serves as a pivotal step to entice and streamline investments. Additionally, the government has declared a trajectory for ‘Renewable Purchase Obligation’ (RPO) extending up to the year 2029-30,” Singh states.
The creation of ‘Ultra Mega Renewable Energy Parks’ to provide expansive land and transmission facilities, facilitating large-scale installations by renewable energy developers. The scheme named ‘Green Energy Corridor Scheme’ encompasses the laying of new transmission lines and the creation of new sub-station capacity to efficiently evacuate renewable power, as per the statement issued by the Ministry of New & Renewable Energy (MNRE).
Further initiatives, such as PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan), Solar Rooftop Phase-II, 1200 MW CPSU Scheme Phase II, etc., aimed to provide a conducive environment for renewable energy projects, it says.
“The launch of the ‘National Green Hydrogen Mission’ positions India as a global hub for the production, utilisation, and export of Green Hydrogen and its derivatives,” Singh adds.
Noteworthy regulations, including notification to promote renewable energy through Green Energy Open Access Rules 2022. The launch of ‘Green Term Ahead Market’ (GTAM) to facilitate sale of renewable energy power through exchanges. The standard bidding guidelines for tariff-based competitive bidding, have been introduced to facilitate the procurement of power from Grid Connected Solar PV and Wind Projects, it adds.
Additionally, the exemption from Inter State Transmission System (ISTS) fees is granted for the inter-state sale of solar and wind power from projects scheduled to be operational by June 30, 2025. The release of notification of standards for deployment of solar photovoltaic system/devices to contribute towards a favourable investment landscape.
The issuance of orders mandating power dispatch against Letter of Credit (LC) or advance payment underscores the government's commitment to ensuring timely payments by distribution licensees to renewable energy generators, thereby fostering a sustainable and investor-friendly ecosystem, it says.
