India's Renewable Energy sector attracted $6.1 billion in FDI: R. K. Singh
Wednesday, 20 December 2023, 15:22 IST
India has received a total Foreign Direct Investment (FDI) equity inflow of $6,137.39 million in the renewable energy sector over the past three fiscal years, according to Union Minister for New & Renewable Energy and Power, R. K. Singh. He outlined the government's initiatives to attract FDI into the renewable energy sector, highlighting that the current FDI policy allows for up to 100% investment in this sector under the automatic route. As part of a proactive strategy to strengthen the renewable energy industry in India, the government has established a 'Project Development Cell' to attract and streamline investments. Additionally, there is a defined trajectory for the 'Renewable Purchase Obligation' (RPO) set by the government, extending until the fiscal year 2029-30, contributing to the overall effort to boost investments in the sector.
The establishment of 'Ultra Mega Renewable Energy Parks' aims to offer extensive land and transmission facilities, streamlining the implementation of large-scale renewable energy projects by developers. The initiative, known as the 'Green Energy Corridor Scheme,' involves the installation of new transmission lines and the development of additional sub-station capacity to effectively transmit renewable power, according to a statement from the Ministry of New & Renewable Energy (MNRE). Union Minister R. K. Singh notes that the introduction of the 'National Green Hydrogen Mission' positions India as a global centre for the production, utilization, and export of Green Hydrogen and its derivatives.
Significant regulations, including the introduction of Green Energy Open Access Rules 2022 to promote renewable energy. The establishment of the 'Green Term Ahead Market' (GTAM) to facilitate the trading of renewable energy power through exchanges. Furthermore, projects scheduled to be operational by June 30, 2025, are exempted from Interstate Transmission System (ISTS) fees for the inter-state sale of solar and wind power. The issuance of directives mandating power dispatch contingent on a Letter of Credit (LC) or advance payment underscores the government's dedication to ensuring punctual payments from distribution licensees to renewable energy generators, thereby cultivating a sustainable and investor-friendly environment.
The establishment of 'Ultra Mega Renewable Energy Parks' aims to offer extensive land and transmission facilities, streamlining the implementation of large-scale renewable energy projects by developers. The initiative, known as the 'Green Energy Corridor Scheme,' involves the installation of new transmission lines and the development of additional sub-station capacity to effectively transmit renewable power, according to a statement from the Ministry of New & Renewable Energy (MNRE). Union Minister R. K. Singh notes that the introduction of the 'National Green Hydrogen Mission' positions India as a global centre for the production, utilization, and export of Green Hydrogen and its derivatives.
Significant regulations, including the introduction of Green Energy Open Access Rules 2022 to promote renewable energy. The establishment of the 'Green Term Ahead Market' (GTAM) to facilitate the trading of renewable energy power through exchanges. Furthermore, projects scheduled to be operational by June 30, 2025, are exempted from Interstate Transmission System (ISTS) fees for the inter-state sale of solar and wind power. The issuance of directives mandating power dispatch contingent on a Letter of Credit (LC) or advance payment underscores the government's dedication to ensuring punctual payments from distribution licensees to renewable energy generators, thereby cultivating a sustainable and investor-friendly environment.
