The renewable energy sector in India has received $4826.65 million in FDI over the last five financial years, Power Minister R K Singh has informed
The renewable energy sector in India has received $4826.65 million in Foreign Direct Investment (FDI) over the last five financial years, Power Minister R K Singh informed the Parliament on July 11, 2019.
Answering a question on whether the Government has any scheme to invite foreign investment for the development of the renewable energy sector including solar power generation industry. Singh said that the government through the Ministry of New and Renewable Energy (MNRE) allow 100 percent FDI in the renewable energy sector including solar power industry through automatic route.
The minister further cited the data provided by the Department for Promotion of Industry and Internal Trade to report that FDI equity inflow in the renewable energy sector over the last five fiscal years (FY 14/15 and FY 18/19) was $4826.65 million.
According to the latest data, the country received $616 million in FY 2014-15. However, the next year it went up by over 26% to $777 million. In 2016-17, there was a nominal increase in the FDI inflows coming in the renewable energy sector as it touched $784 million.
In FY 19, the sector saw an investment of $1446.16 million from foreign sources, a 20.1 percent growth over the previous year. In the latest 2019 Renewable Energy Country Attractiveness Index report by EY, India ranks fourth among 40 countries.
Given the massive requirement for funds to achieve the ambitious 175 GW target by 2022, the government had opened the sector for 100 percent foreign direct investment through automatic route. However, the current pace of foreign direct investment coming in the sector is just a fraction of the total investment requirement.
The Economic Survey 2018-19, which was presented a day before the union budget was presented by Nirmala Sitharaman in the Parliament, estimated that the country will need investment worth $80 billion by 2022 and an additional $250 billion investment between 2023 to 2030.