In a bid to bolster India’s commitment to sustainable energy and attract foreign investments, the Union Minister for New & Renewable Energy and Power, R. K. Singh, unveiled a comprehensive set of measures that have resulted in a substantial influx of Foreign Direct Investment (FDI) into the renewable energy sector.
Underlining the government’s dedication to fostering a green energy future, the Minister announced that FDI in the renewable energy sector is now permitted up to 100% under the automatic route, making it an attractive destination for global investors.
The strategic steps taken by the government to attract investments include the establishment of a Project Development Cell aimed at facilitating and attracting investments. This move aligns with the commitment to elevate the renewable energy landscape and underscores the nation’s commitment to sustainable development.
Other key initiatives highlighted by Minister R. K. Singh include:
- Declaration of trajectory for Renewable Purchase Obligation (RPO) until 2029-30.
- Creation of Ultra Mega Renewable Energy Parks to provide essential infrastructure for large-scale renewable energy projects.
- Expansion of transmission infrastructure under the Green Energy Corridor Scheme to facilitate the evacuation of renewable power.
- Launch of transformative schemes such as Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM), Solar Rooftop Phase-II, 1200 MW CPSU Scheme Phase II, among others.
- Unveiling of the National Green Hydrogen Mission, positioning India as a global hub for green hydrogen production, utilization, and export.
- Notification of Green Energy Open Access Rules 2022 and the launch of the Green Term Ahead Market (GTAM) to facilitate the sale of renewable energy power through exchanges.
- Release of Standard Bidding Guidelines for tariff-based competitive bidding in solar and wind projects.
- Waiver of Inter-State Transmission System (ISTS) charges for inter-state sale of solar and wind power projects commissioned by June 30, 2025.
- Implementation of standards for the deployment of solar photovoltaic systems/devices.
- Enforcement of measures to ensure timely payment by distribution licensees to renewable energy generators.
As a testament to these efforts, the Department for Promotion of Industry and Internal Trade (DPIIT) reports that the country has attracted a total FDI Equity investment of USD 6,137.39 Million in the renewable energy sector over the last three financial years and the current financial year (till 30.09.2023).
The minister expressed optimism about the transformative impact of these initiatives, stating that India is on the path to becoming a global leader in renewable energy.
