India is a Favoured Investment Destination in Clean Energy

An investment of about Rs. 4900 crore has been received as FDI equity inflows in the renewable energy sector during the last three years and the current year. Year-wise details are as under:

Year (Apr-Mar)     FDI (Rs./ crore)

2008-09                      602.87

2009-10                   2,872.41

2010-11                      977.71

2011-12(Apr-Jun)         480.34

                                4933.33

Giving this information in a written reply to a question in Lok Sabha today the Minister of New and Renewable Energy Dr.Farooq Abdullah said a recent report by independent consultants E&Y (Ernst & Young Renewable Energy Country Attractiveness Indices, May 2011) has ranked India as the 3rd best investment destination in Renewable energy sector, next only to China  and  USA.       

                       

            

The Minister said that 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.  He added besides existing policy enablers under the Electricity Act, other key initiatives taken in the recent past to attract foreign private investments including from foreign countries in the Renewable Energy  sector include introduction of Generation Based Incentives scheme for wind power to promote projects under IPP mode, launch of Jawaharlal Nehru National Solar Mission with 22,000 MW target for solar power by 2022, Payment Security Mechanism for Grid Connected Solar Power Projects under the Mission, Launch of Renewable Energy Certificate mechanism  and Amendment in National Tariff Policy to enable Solar specific RPO. (PIB)