In a recent update, the Union Minister for New & Renewable Energy and Power, Shri R. K. Singh, shared significant strides taken by the Indian government to attract Foreign Direct Investment (FDI) into the country’s burgeoning renewable energy sector. According to the minister, the existing FDI policy permits up to 100% investment in the renewable energy domain under the automatic route.
To bolster this initiative, the government has implemented various measures, including the establishment of a Project Development Cell dedicated to attracting and facilitating investments. Additionally, the declaration of a trajectory for Renewable Purchase Obligation (RPO) until 2029-30 aims to provide a clear roadmap for stakeholders. The creation of Ultra Mega Renewable Energy Parks, designed to offer land and transmission infrastructure to renewable energy developers for large-scale projects, is another significant step.
Further, the government is actively expanding the Green Energy Corridor Scheme by laying new transmission lines and developing sub-station capacity to efficiently evacuate renewable power. Several schemes, such as Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM), Solar Rooftop Phase-II, and the 1200 MW CPSU Scheme Phase II, have been launched to promote renewable energy adoption.
The ambitious National Green Hydrogen Mission has also been inaugurated with the goal of establishing India as a global hub for the production, utilization, and export of Green Hydrogen and its derivatives. Additionally, strategic moves like the notification of Promoting Renewable Energy through Green Energy Open Access Rules 2022 and the launch of the Green Term Ahead Market (GTAM) aim to facilitate the sale of renewable energy power.
In response to these initiatives, the Department for Promotion of Industry and Internal Trade (DPIIT) reported a noteworthy FDI Equity investment of USD 6,137.39 Million in the renewable energy sector over the last three financial years and the ongoing financial year until September 30, 2023.
These developments underscore the government’s commitment to fostering a conducive environment for foreign investments and promoting sustainable energy solutions in India’s quest for a cleaner and greener future.
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