Lok Sabha Question No. 2562 (UNSTARRED), answered on 2022-03-17
Subject: Foreign Investment in Solar Energy Sector
Ministry: NEW AND RENEWABLE ENERGY
Asked by: Malook Nagar

## GOVERNMENT OF INDIA MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA UNSTARRED QUESTION NO. 2562

ANSWERED ON 17.03.2022

## FOREIGN INVESTMENT IN SOLAR ENERGY SECTOR

## +2562. SHRI MALOOK NAGAR

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

- (a) whether solar energy plants have been set up/ are being set up through foreign investment in the country;
- (b) if so, the details of the investment made by the foreign companies for the said purpose, country-wise;
- (c) whether there is any provision to provide any kind of encouragement to promote direct foreign investment in solar energy sector;
- (d) if so, the details thereof; and
- (e) the details of the other steps taken by the Government to encourage solar energy generation in the country?

## ANSWER

## THE MINISTER OF NEW & RENEWABLE ENERGY AND POWER

## (SHRI R.K. SINGH)

(a)&(b): Yes, Sir. As per report from Department for Promotion of Industry and Internal Trade, the country-wise details of Foreign Direct Investment (FDI) equity inflow during the period April, 2000 to December, 2021 received in 'Non-Conventional Energy' sector including solar power are given at Annexure-I .

(c)&(d) The Government has permitted Foreign Direct Investment (FDI) up to 100 percent under the automatic route in solar energy sector.

- (e):  The  Government  has  taken  several  steps  to  encourage  solar  energy  generation  in  the country.  The details are given at Annexure-II .

*****

## ANNEXURE-I REFERRED TO IN REPLY TO PART (a) and (b) OF LOK SABHA UNSTARRED QUESTION NO. 2562 FOR 17.03.2022

## STATEMENT ON COUNTRY-WISE FDI EQUITY INFLOWS FROM APRIL 2000 TO DECEMBER 2021 SECTOR- NON-CONVENTIONAL ENERGY

## (Amount in US$ million)

|   Sr. No | Name of the Country     | Amount of Foreign Direct Investment Inflows   |
|----------|-------------------------|-----------------------------------------------|
|        1 | Mauritius               | 3,810.41                                      |
|        2 | Singapore               | 1,751.16                                      |
|        3 | United Kingdom          | 1,591.14                                      |
|        4 | Netherland              | 797.68                                        |
|        5 | Indonesia               | 430.67                                        |
|        6 | Spain                   | 399.47                                        |
|        7 | Canada                  | 348.96                                        |
|        8 | Malaysia                | 312.72                                        |
|        9 | Japan                   | 270.98                                        |
|       10 | U.S.A                   | 200.61                                        |
|       11 | France                  | 193.01                                        |
|       12 | Germany                 | 145.19                                        |
|       13 | Norway                  | 119.99                                        |
|       14 | Italy                   | 116.58                                        |
|       15 | UAE                     | 103.83                                        |
|       16 | Seychelles              | 85.76                                         |
|       17 | Cayman Islands          | 74.24                                         |
|       18 | Luxembourg              | 74.17                                         |
|       19 | HongKong                | 73.23                                         |
|       20 | China                   | 54.01                                         |
|       21 | South Korea             | 45.56                                         |
|       22 | Philippines             | 44.73                                         |
|       23 | Australia               | 28.83                                         |
|       24 | Denmark                 | 25.76                                         |
|       25 | Cyprus                  | 23.57                                         |
|       26 | British Virginia        | 18.54                                         |
|       27 | Bahrain                 | 16.51                                         |
|       28 | Korea(North)            | 14.52                                         |
|       29 | Belgium                 | 11.52                                         |
|       30 | Virgin Islands(US)      | 8.22                                          |
|       31 | Saudi Arabia            | 5.83                                          |
|       32 | Switzerland             | 4.13                                          |
|       33 | Austria                 | 3.46                                          |
|       34 | Czech Republic          | 1.05                                          |
|       35 | Country Details Awaited | 0.52                                          |
|       36 | Liechtenstein           | 0.48                                          |
|       37 | Finland                 | 0.34                                          |
|       38 | Bulgaria                | 0.25                                          |
|       39 | Sweden                  | 0.25                                          |

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| Sr. No   | Name of the Country   | Amount of Foreign Direct Investment Inflows   |
|----------|-----------------------|-----------------------------------------------|
| 40       | Bahamas               | 0.20                                          |
| 41       | Bermuda               | 0.20                                          |
| 42       | Qatar                 | 0.18                                          |
| 43       | NRIs                  | 0.12                                          |
| 44       | Kuwait                | 0.09                                          |
| 45       | British Isles         | 0.06                                          |
| 46       | Russia                | 0.03                                          |
| 47       | Slovenia              | 0.03                                          |
| 48       | Poland                | 0.03                                          |
| 49       | Turkey                | 0.02                                          |
| 50       | South Africa          | 0.02                                          |
| 51       | Portugal              | 0.00                                          |
| 52       | Georgia               | 0.00                                          |
| 53       | Israel                | 0.00                                          |
| 54       | Malta                 | 0.00                                          |
| 55       | Syria                 | 0.00                                          |
|          | Grand Total           | 11,208.89                                     |

## ANNEXURE-II REFERRED TO PART (e) IN REPLY TO LOK SABHA UNSTARRED QUESTION NO. 2562 FOR 17.03.2022

## Steps taken by the Government to encourage solar energy generation in the country

- Permitting Foreign Direct Investment (FDI) up to 100 percent under the automatic route,
- Waiver of Inter State Transmission System (ISTS) charges for inter-state sale of solar and wind power for projects to be commissioned by 30th June 2025,
- Declaration of trajectory for Renewable Purchase Obligation (RPO) up to the year 2022,
- Setting up of Ultra Mega Renewable Energy Parks to provide land and transmission to RE developers on a plug and play basis,
-  Introduced  various  schemes such as Pradhan Mantri Kisan Urja Suraksha evam Utthaan  Mahabhiyan  (PM-KUSUM),  Solar  Rooftop  Phase  II,  12000  MW  CPSU Scheme  Phase  II,  Production  Linked  Incentive(PLI)  scheme  for  promoting  solar manufacturing etc.,
- Laying of new transmission lines and creating new sub-station capacity under the Green Energy Corridor Scheme for evacuation of renewable power,
- Notification of standards for deployment of solar photovoltaic system/devices,
- Setting up of Project Development Cell for attracting and facilitating investments,
- Setting up of a cell for Foreign Direct Investment (FDI)
-  Standard  Bidding  Guidelines  for  tariff  based  competitive  bidding  process  for procurement of Power from Grid Connected Solar PV and Wind Projects.
- Government has issued orders that power shall be dispatched against Letter of Credit (LC) or advance payment to ensure timely payment by distribution licensees to RE generators.