Greentech Lead India: The Government has allowed FDI inflow to the tune of Rs.8569 Crores (US$ 1756 million) in the renewable energy sector during the last three years and current years (as on 31.12.2012), said Minister for New & Renewable Energy, Dr. Farooq Abdullah.
Government of India allows 100 percent Foreign Direct Investment (FDI) through automatic route to investors of renewable energy.
State-wise details of Foreign Direct Investment (FDI) during the last three years and current year i.e 2009-10, 2010-11, 2011-12 and 2012-13 (as on 31.12.2012):
| States Covered | 2009-10 | 2010-11 | 2011-12 | 2012-13 |
| Apr-Mar | Apr-Mar | Apr-Mar | Apr-Mar | |
| US$(million) | US$(million) | US$(million) | US$(million) | |
| ANDHRA PRADESH | 0 | 30.07 | 132.04 | 8.9 |
| GUJARAT | 37.6 | 124.98 | 0 | 0.08 |
| KARNATAKA | 29.55 | 26.77 | 9.03 | 52.96 |
| MAHARASHTRA, DADRA & NAGAR HAVELI, DAMAN & DIU | 71.87 | 21.49 | 142.95 | 120.14 |
| RAJASTHAN | 0 | 0 | 0.1 | 0 |
| TAMIL NADU, PONDICHERRY | 3.03 | 4.48 | 20.57 | 202.87 |
| UTTAR PRADESH, UTTRANCHAL | 0.21 | 0 | 0 | 0 |
| WEST BENGAL, SIKKIM, ANDAMAN & NICOBAR ISLANDS | 0 | 0.14 | 0 | 4.13 |
| CHANDIGARH, PUNJAB, HARYANA, HIMACHAL PRADESH | 0 | 0.54 | 0.57 | 0 |
| DELHI, PART OF UP AND HARYANA | 480.25 | 5.79 | 145.83 | 58.75 |
| GOA | 0 | 0 | 0 | 0.15 |
| Region not Indicated | 0.02 | 0.13 | 1.08 | 19.08 |
| Grand Total | 622.52 | 214.4 | 452.17 | 467.07 |
To promote renewable energy investment, the government also offers fiscal and monetary incentives to renewable energy developers.
The government also has a policy to encourage transfer of foreign technologies, including those in renewable energy sector.
Private sector companies are partnering with government and co-investing in R&D and technology development.
Government has allowed fiscal and financial incentives, such as, capital / interest subsidies, accelerated depreciation, nil/concessional excise and customs duties; preferential tariff for grid interactive renewable power in most potential States following the provisions made under the National Electricity Policy 2005 and National Tariff Policy 2006, Uniform guidelines by CERC for fixation of such preferential tariffs being issued every year.
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The Jawaharlal Nehru National Solar Mission (JNNSM) was launched to facilitate large scale capital investment in solar energy sector, Payment Security Mechanism for grid connected solar power projects under the Mission.
Phase I of JNNSM is nearing completion in March. So far, 149 nos. of private sector solar power projects with an aggregate 1110 MW capacity (139 nos./610 MW based on Solar PV technology and 10 nos./ 500 MW based on Solar Thermal technology) have been selected under different schemes of JNNSM Phase-1.
Most of the 139 SPV projects have been set up within the stipulated completion schedule or allowed extended period of 6 months with payment of penalties.
Government allotted solar power projects through open competitive bidding in which private sector has got several projects.
12 projects with 26 MW aggregate capacity (8 nos./10 MW under RPSSGP, 2 nos./ 6 MW-Migration, 2no./10 MW under Batch -I) have been cancelled due to different reasons, mainly the inability of developers to arrange financial closure and their poor project management capabilities.
With regard to Solar Thermal projects under migration scheme, two projects of 20 MW aggregate have been cancelled, while the third project was commissioned partly much before schedule and the developer has not shown interest in commissioning the balance capacity, the Minister said. The remaining Solar Thermal projects are in progress.