FDI in 319 renewable energy projects in India during 2009-2012 stands at $1.24 billion

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FDI in 319 renewable energy projects in India during 2009-2012 stands at $1.24 billion

Greentech Lead India: India has attracted foreign
director investment (FDI) of Rs 5,826 crore ($1,245 million) in 319 renewable
energy projects during 2009-2012.

There has been a rapid growth in deployment of clean/
renewable energy projects in the country attracting major investments, domestic
as well as foreign. 

A total installed capacity of over 10,400 MW has been added from various
renewable power generation projects during the last three years (2009-12). This
comprises of 7,112 MW wind power, 965 MW small hydro power, 1,414 MW bio-power
and 940 MW solar power.

The project locations/ sites are either allotted by the
State Governments or acquired by the private developers themselves, depending
on the renewable energy resources involved. 

The renewable energy sectors which have progressed well are wind power,
bio-power, small hydro power and solar power. The Government has taken several
steps to encourage development of renewable energy sector.

Private sector companies are partnering with government and co-investing in
R&D and technology development. 

Fiscal and financial incentives, such as capital / interest subsidies,
accelerated depreciation, nil/ concessional excise and customs duties are some
of the steps. 

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; 

Jawaharlal Nehru National Solar Mission was launched to facilitate large scale
capital investment in solar energy sector. Payment Security Mechanism for grid
connected Solar Power Projects under the Mission is yet another value addition,
according to the Minister of New and Renewable Energy Farooq Abdullah. 

The Government has a policy to encourage transfer of foreign technologies,
including those in renewable energy sector. FDI up to 100 percent under the
automatic route is permitted in Renewable Energy Generation and Distribution
projects subject to provisions of Electricity Act, 2003. 

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