Lok Sabha Question No. 4239 (UNSTARRED), answered on 2020-03-19
Subject: Investment in Renewable Energy Projects
Ministry: NEW AND RENEWABLE ENERGY
Asked by: Pratima Bhoumik, Bhagwanth Khuba

## GOVERNMENT OF INDIA MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA UNSTARRED QUESTION NO. 4239

TO BE ANSWERED ON 19.03.2020

## INVESTMENT IN RENEWABLE ENERGY PROJECTS

## 4239.  MS. PRATIMA BHOUMIK

## SHRI BHAGWANTH KHUBA

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

- (a) whether the Government has any data with regard to the investment made by Banks and Financial Companies to finance renewable energy projects in the country during the last five years and if so, the details thereof, year and project-wise;
- (b) the investment required to achieve the production target of 175 GW of renewable energy by 2022 including investment needed for transmission and up-gradation;
- (c)  whether  the  present  pace/scenario  of  investment  is  adequate  to  meet  the  financial  requirements  of various projects needed to achieve target; and
- (d) if so, the details thereof and if not, the reasons therefor along with the steps taken by the Government to facilitate more investment in this sector?

## ANSWER

THE MINISTER OF STATE (I/C) FOR NEW & RENEWABLE ENERGY, POWER and MoS for SKILL DEVELOPMENT AND ENTREPRENEURSHIP

## (SHRI R.K. SINGH)

- (a)  Year-wise  estimated  investment  made  in  Renewable  Energy  sector  in  the  country  during  last  five years as per Bloomberg New Energy Finance(BNEF) report are given in Annexure .
- (b) A cumulative renewable energy capacity of  86.75 GW has already been installed in the country upto 29 th February 2020. To achieve the balance target of 88.25 GW, an estimated investment of  around Rs 4,21,861 crore is required at present  capital costs. Further, in order to evacuate  and  integrate 175 GW of  RE  power    by  2022,  the  Ministry  of  New  and  Renewable  Energy  has  made  a  plan  to  set  up  new transmission systems of 66.5 GW at approx. cost of Rs. 43000 crore.
- (c) Most of the grid connected renewable energy projects in the country are being implemented by the private sector developers selected through transparent competitive bidding process. However, sufficient financial resources (both domestic and international) are available for the investments/ meeting financial requirements  to  achieve  175  GW  of    RE  installed  capacity  by  2022.  These  include  Domestic  Bonds, Green Bonds, Masala Bonds, External Commercial Borrowings, International Lines of Credit, Pension and Sovereign Funds, Alternate Investment Funds, etc., besides loans from financial institutions.
- (d)  The  steps  taken  by  the  Government  to  facilitate  investment  in  the  country  for  renewable  energy projects,  inter-alia,  include  permitting  Foreign  Direct  Investment  (FDI)  up  to  100  percent  under  the automatic route, strengthening of Power Purchase Agreements(PPAs), mandating requirement of Letter of Credit(LC) as payment security mechanism by distribution licensees for ensuring timely payments to RE generators, setting of Ultra Mega Renewable Energy Parks to provide land  and transmission on plug and play basis, waiver of Inter State Transmission System (ISTS) charges and losses for inter-state sale of solar and wind power for projects to be commissioned by 31 st December, 2022, notification of standard bidding guidelines to enable distribution licensee to procure solar and wind power at competitive rates, declaration  of  trajectory  for  Renewable  Purchase  Obligation  (RPO)  up  to  the  year  2022,  laying  of transmission lines under Green Energy Corridor Scheme for evacuation of power in renewable rich areas launching  of    new  schemes  such  as  Pradhan  Mantri  Kisan  Urja  Suraksha  evam  Utthaan  Mahabhiyan (PM-KUSUM), Solar Rooftop Phase II, 12000 MW CPSU Scheme Phase II, etc.

## ANNEXURE REFERRED TO IN REPLY TO LOK SABHA UNSTARRED QUESTION NO.4239, Part (a)

## TO BE ANSWERED ON 19/3/2020

As per Bloomberg NEF, the Investment trends in Indian Renewable Energy Sector during last 5 years are as follows:

|                 | CY 2015                   | CY 2016                      | CY 2017                  | CY 2018                    | CY 2019                   |
|-----------------|---------------------------|------------------------------|--------------------------|----------------------------|---------------------------|
| Investments (*) | USD 9.9 Bn (Rs.72,972 Cr) | USD 13.7 Bn (Rs.1,00,982 Cr) | USD 11 Bn (Rs.81,080 Cr) | USD 10.8 Bn (Rs 79,606 Cr) | USD 9.3 Bn (Rs.68,550 Cr) |