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India's renewable sector receives $6.1 billion in FDI

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AccordAccording to Union Minister R K Singh's written response in the Rajya Sabha, India's renewable energy domain has garnered Foreign Direct Investment (FDI) worth $6.1 billion between April 2020 and September 2023. The Department for Promotion of Industry and Internal Trade (DPIIT) has furnished data indicating that the country received a total FDI equity investment of USD 6,137.39 Million in the renewable energy sector over the past three fiscal years and the ongoing fiscal year up to September 30, 2023, as per the minister's statement.

Singh emphasized that the existing FDI policy allows investments in the renewable energy sector up to 100% via the automatic route. To bolster investment in this sector, the Indian government has introduced various measures. These efforts encompass the establishment of a Project Development Cell aimed at facilitating investments and the creation of Ultra Mega Renewable Energy Parks. Additionally, initiatives like constructing new transmission lines as part of the Green Energy Corridor Scheme have been implemented to encourage both domestic and foreign investments.

Alongside these infrastructural advancements, the government has initiated several schemes, including Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM), Solar Rooftop Phase-II, and the 1200 MW CPSU Scheme Phase II. To position India as a leader in green hydrogen production and export, the National Green Hydrogen Mission has been launched. Complementing these initiatives are the Green Energy Open Access Rules 2022, the introduction of the Green Term Ahead Market (GTAM), and the issuance of Standard Bidding Guidelines for solar PV and wind projects. Furthermore, the government has waived Inter-State Transmission System (ISTS) charges for solar and wind power projects commissioned by June 30, 2025, and established standards for solar photovoltaic systems and devices to further support these endeavors.