FDI Equity inflows in RE sector in India

Posted on August 27, 2011 by

India has emerged favoured investment destination in Clean Energy. In the last three years and current year included, an investment of about Rs. 4900 crore has been received as FDI equity inflows in the RE sector.

Year-wise details are as under:

Year (Apr-Mar)     FDI (Rs./ crore)
2008-09 602.87
2009-10 2872.41
2010-11 977.71
2011-12 (Apr-Jun) 480.34
TOTAL 4933.33

This was discussed by MNRE minister gave this infirmation in a written reply to a question in Lok Sabha today yesterday. FDI up to 100% under the automatic route is permitted in Renewable Energy Generation and Distribution projects subject to the provisions of the Electricity Act, 2003. In addition to the policy enablers under the Electricity Act, other key initiatives that have attracted foreign private investments in Indian the Renewable Energy sector are as under

  • Fiscal and financial incentives for grid as well as off-grid systems in the form of capital and interest subsidy, generation based incentives, accelerated depreciation, concessional excise and customs duties;
  • Generation Based Incentives Scheme introduced for Independent Power Producers in the Wind power and Solar Power to attract private investment by Independent Power Producers
  • Directives under section 86 1 (e) of the Electricity Act 2003 to all States for fixing a minimum percentage for purchase of electricity from renewable energy sources;
  • Preferential tariff for grid interactive renewable power in most potential States under the National Electricity Policy 2005 and National Tariff Policy 2006 through uniform guidelines by CERC
  • Jawaharlal Nehru National Solar Mission to enable large scale capital investment in solar energy applications coupled with amendment in National Tariff Policy to enable Solar specific RPO
  • Payment Security Mechanism for Grid Connected Solar Power Projects under the Mission
  • Launch of Renewable Energy Certificate mechanism


Posted in: Renewable Energy