Lok Sabha Question No. 624 (UNSTARRED), answered on 2018-12-13
Subject: Investment in NRE Sector
Ministry: NEW AND RENEWABLE ENERGY
Asked by: RAJIV PRATAP RUDY

## GOVERNMENT OF INDIA MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA UNSTARRED QUESTION NO-624

TO BE ANSWERED ON-13.12.2018

## INVESTMENT IN NRE SECTOR

## 624. SHRI RAJIV PRATAP RUDY

Will the Minister of NEW AND RENEWABLE ENERGY be pleased to state:-

- (a) the details of foreign and domestic investment in the New and Renewable Energy (NRE) sector in the country during the last four years and the current year, country and State/UT-wise;
- (b) the details of the steps taken by the Government to attract investments from both within the country and overseas with  a view to add  additional power and to meet the target set for  generation of power through renewable energy sources;
- (c) whether any consultation has been held with the Ministry of Finance for providing certain additional incentives to this sector and if so, the details thereof; and
- (d) the details of the private sector companies that are partnering with Government and co-investing in R&D and technology development?

## ANSWER

## THE MINISTER OF STATE FOR NEW & RENEWABLE ENERGY AND POWER (I/C) (SHRI R.K. SINGH)

- (a) A total of 37.83 GW of renewable energy capacity has been added in the country during the last four years and the current year (up to October 2018) with an estimated investment of about Rs 196 thousand crore. As per Department of Industrial Policy & Promotion, the details of country-wise and State/UTwise  Foreign  Direct  Investment  (FDI)  equity  inflows  received  in  the  renewable  energy  sector  in  the country during the last four years and the current year are given at Annexure.
- (b) The Government have taken various steps to attract investments from both within the country and overseas with a view to increase generation from renewable energy sources. These inter-alia, includes fiscal and promotional incentives such as capital subsidy, accelerated depreciation, waiver of Inter State Transmission System (ISTS) charges and losses, Viability Gap Funding (VGF) and permitting Foreign Direct Investment up to 100 per cent under the automatic route. Also, to ensure cheaper generation of renewable  power,  projects  are  awarded  through  transparent  bidding  process  i.e.  through  e-reverse auction. Government has also issued standard bidding guidelines to enable the distribution licensees to procure power at competitive rates in cost effective manner.
- (c)  The  Ministry  has  approached  Ministry  of  Finance  for  providing  incentives  to  renewable  energy sector,  such  as,  Goods  &  Services  Tax  (GST)  at  concessional  rate  of  5%  for  renewable  energy generating systems.
- (d) National Institute of Solar Energy (NISE) an R&D institution of this Ministry has been partnering with private sector companies such as Mahindra & Mahindra, Tata Motors, VS Saurya Enertech, etc. for technology development in field of solar energy and hydrogen fuel cells.

Annexure  referred  in  reply  to  part  (a)  of  the  Lok  Sabha  Un-starred  question  number  624  for 13/12/2018  showing  country-wise  and  State/UT-wise  Foreign  Direct  Investment  (FDI)  equity inflows received in the renewable energy sector in the country during the last four years and the current year .

## Statement on Financial Year & Country Wise FDI Equity Inflows from April 2014 to June 2018 in Renewable Energy Sector

| Sl No   | Country        | 2014-15 Apr-Mar    | 2015-16 Apr-Mar    | 2016-17 Apr-Mar    | 2017-18 Apr-Mar    | 2018-19 Apr-Jun    | Total              |
|---------|----------------|--------------------|--------------------|--------------------|--------------------|--------------------|--------------------|
|         |                | FDI in US$ million | FDI in US$ million | FDI in US$ million | FDI in US$ million | FDI in US$ million | FDI in US$ million |
| 1       | Australia      | 0.00               | 28.33              | 0.17               | 0.00               | 0.00               | 28.50              |
| 2       | Bahrain        | 12.34              | 2.29               | 0.00               | 0.00               | 0.00               | 14.63              |
| 3       | Belgium        | 0.00               | 0.03               | 0.00               | 0.00               | 11.50              | 11.52              |
| 4       | Bulgaria       | 0.00               | 0.00               | 0.25               | 0.00               | 0.00               | 0.25               |
| 5       | Canada         | 0.00               | 0.00               | 0.00               | 0.00               | 245.91             | 245.91             |
| 6       | Cayman Islands | 0.02               | 0.00               | 0.00               | 5.99               | 0.00               | 6.01               |
| 7       | China          | 0.00               | 12.68              | 0.00               | 9.34               | 16.23              | 38.25              |
| 8       | Cyprus         | 7.38               | 7.08               | 0.08               | 0.00               | 0.94               | 15.47              |
| 9       | Denmark        | 0.00               | 1.12               | 0.00               | 0.70               | 0.00               | 1.81               |
| 10      | France         | 30.71              | 25.38              | 38.66              | 15.60              | 1.22               | 111.58             |
| 11      | Germany        | 14.14              | 0.17               | 50.03              | 4.61               | 5.01               | 73.97              |
| 12      | HongKong       | 21.04              | 0.04               | 3.70               | 2.54               | 14.21              | 41.53              |
| 13      | Israel         | 0.00               | 0.00               | 0.00               | 0.00               | 0.00               | 0.00               |
| 14      | Italy          | 0.00               | 0.34               | 0.00               | 14.98              | 0.00               | 15.32              |
| 15      | Japan          | 0.02               | 137.30             | 0.00               | 8.21               | 20.11              | 165.63             |
| 16      | South Korea    | 0.00               | 21.52              | 0.00               | 0.00               | 0.00               | 21.52              |
| 17      | Kuwait         | 0.00               | 0.00               | 0.00               | 0.00               | 0.09               | 0.09               |
| 18      | Luxembourg     | 26.62              | 10.32              | 20.31              | 3.82               | 0.70               | 61.77              |
| 19      | Malaysia       | 77.18              | 0.00               | 0.00               | 0.00               | 0.00               | 77.18              |
| 20      | Mauritius      | 120.03             | 223.34             | 306.20             | 281.14             | 35.40              | 966.10             |
| 21      | Netherlands    | 15.14              | 51.50              | 126.26             | 383.64             | 40.77              | 617.31             |
| 22      | Philippines    | 0.00               | 0.00               | 44.69              | 0.00               | 0.00               | 44.69              |
| 23      | Portugal       | 0.00               | 0.00               | 0.00               | 0.00               | 0.00               | 0.00               |
| 24      | Qatar          | 0.00               | 0.08               | 0.00               | 0.00               | 0.00               | 0.08               |
| 25      | Saudi Arabia   | 0.26               | 0.00               | 0.00               | 0.00               | 0.00               | 0.26               |
| 26      | Singapore      | 141.18             | 160.66             | 106.71             | 326.51             | 6.31               | 741.36             |
| 27      | Spain          | 80.59              | 14.73              | 19.52              | 21.64              | 0.01               | 136.49             |
| 28      | Sweden         | 0.02               | 0.01               | 0.00               | 0.03               | 0.00               | 0.06               |
| 29      | Slovenia       | 0.00               | 0.03               | 0.00               | 0.00               | 0.00               | 0.03               |
| 30      | Switzerland    | 0.00               | 0.00               | 0.00               | 0.04               | 0.00               | 0.04               |

| 31   | Syria            |   0.00 |   0.00 |   0.00 | 0.00     |   0.00 | 0.00     |
|------|------------------|--------|--------|--------|----------|--------|----------|
| 32   | Turkey           |   0    |   0    |   0    | 0.00     |   0    | 0.00     |
| 33   | UAE              |   2.46 |   1.12 |   3.04 | 0.00     |   0    | 6.63     |
| 34   | United Kingdom   |  11.72 |  16.83 |  60.39 | 89.12    |  28.81 | 206.88   |
| 35   | U.S.A            |  22.61 |  61.63 |   3.51 | 36.55    |  25.67 | 149.97   |
| 36   | British Virginia |   0    |   0    |   0.02 | 0.00     |   0    | 0.02     |
| 37   | Georgia          |   0    |   0    |   0    | 0.00     |   0    | 0.00     |
| 38   | Seychelles       |  32.5  |   0    |   0    | 0.00     |   0    | 32.50    |
|      | Grand Total      | 615.95 | 776.51 | 783.57 | 1,204.46 | 452.89 | 3,833.38 |

## Statement on Financial Year & State/UT wise FDI Equity Inflows from April 2014 to June 2018 in Renewable Energy Sector

| Sl No   | Regional Offices of RBI   | States Covered                                | 2014-15 Apr-Mar    | 2015-16 Apr-Mar    | 2016-17 Apr-Mar    | 2017-18 Apr-Mar    | 2018-19 Apr-Jun    | Total              |
|---------|---------------------------|-----------------------------------------------|--------------------|--------------------|--------------------|--------------------|--------------------|--------------------|
|         |                           |                                               | FDI in US$ million | FDI in US$ million | FDI in US$ million | FDI in US$ million | FDI in US$ million | FDI in US$ million |
| 1       | HYDERABAD                 | ANDHRA PRADESH                                | 18.33              | 58.00              | 150.31             | 143.51             | 27.94              | 398.09             |
| 2       | PATNA                     | BIHAR, JHARKHAND                              | 0.00               | 0.00               | 0.00               | 0.08               | 0.00               | 0.08               |
| 3       | AHMEDABAD                 | GUJARAT                                       | 0.07               | 27.54              | 19.22              | 75.72              | 0.24               | 122.79             |
| 4       | BANGALORE                 | KARNATAKA                                     | 7.01               | 29.08              | 21.21              | 34.20              | 8.96               | 100.45             |
| 5       | BHOPAL                    | MADHYAPRADESH, CHATTISGARH                    | 83.25              | 0.00               | 0.41               | 0.00               | 0.00               | 83.67              |
| 6       | MUMBAI                    | MAHARASHTRA, DADRA &NAGAR HAVELI,DAMAN& DIU   | 12.79              | 160.08             | 127.64             | 53.45              | 7.35               | 361.31             |
| 7       | BHUBANESHWAR              | ORISSA                                        | 0.02               | 0.00               | 0.00               | 0.00               | 0.00               | 0.02               |
| 8       | JAIPUR                    | RAJASTHAN                                     | 3.13               | 1.53               | 0.94               | 4.38               | 0.00               | 9.99               |
| 9       | CHENNAI                   | TAMIL NADU, PONDICHERRY                       | 278.03             | 23.49              | 37.44              | 170.86             | 1.06               | 510.88             |
| 10      | KANPUR                    | UTTAR PRADESH, UTTRANCHAL                     | 0.00               | 6.91               | 0.00               | 0.00               | 0.00               | 6.91               |
| 11      | KOLKATA                   | WEST BENGAL, SIKKIM, ANDAMAN &NICOBAR ISLANDS | 12.34              | 0.00               | 0.00               | 0.00               | 0.00               | 12.34              |
| 12      | CHANDIGARH                | CHANDIGARH, PUNJAB, HARYANA, HIMACHAL PRADESH | 0.00               | 0.25               | 0.00               | 0.00               | 0.00               | 0.25               |
| 13      | NEW DELHI                 | DELHI, PART OF UP AND HARYANA                 | 188.75             | 312.85             | 395.44             | 705.40             | 381.44             | 1,983.87           |
| 14      | REGION NOT INDICATED      | REGION NOT INDICATED                          | 12.24              | 156.77             | 30.96              | 16.87              | 25.91              | 242.75             |
|         |                           | Grand Total                                   | 615.95             | 776.51             | 783.57             | 1,204.46           | 452.89             | 3,833.38           |