Lok Sabha Question No. 680 (UNSTARRED), answered on 2024-07-25
Subject: Participation of Private Sector in Power Generation Sector
Ministry: POWER
Asked by: Shri Arvind Ganpat Sawant, Shri Omprakash Bhupalsinh Alias Pavan Rajenimbalkar, Shri Shrirang Appa Chandu Barne

## GOVERNMENT OF INDIA MINISTRY OF POWER LOK SABHA UNSTARRED QUESTION NO.680

## ANSWERED ON 25.07.2024

## PARTICIPATION OF PRIVATE SECTOR IN POWER GENERATION SECTOR

680   SHRI ARVIND GANPAT SAWANT:

SHRI OMPRAKASH BHUPALSINH

ALIAS PAVAN RAJENIMBALKAR:

SHRI SHRIRANG APPA CHANDU BARNE:

Will the Minister of POWER be pleased to state:

- (a) whether the private sector power generators and foreign investors are not yet ready to enter the power generation sector in a major way;
- (b) if so, the details in this regard alongwith the reasons therefor;
- (c) whether  non-participation  of  the  private  sector  generators  and  foreign investors  has  placed  the  responsibility  largely  on  the  public  sector  which  is under financial pressure;
- (d) if  so,  the  response  of  the  Government  on  the  non-participation  of  the private sector generators and foreign investors in power generation sector; and
- (e) the steps/action taken by the Government to address the issues relating to participation of the private sector generators and foreign investors in power generation sector?

## A N S W E R

THE MINISTER OF STATE IN THE MINISTRY OF POWER

(SHRI SHRIPAD NAIK)

(a) to (d): No.  Private  sector  is  playing  an  important  role  in  India's  power generation. Generation is a de-licensed activity as per the Electricity Act, 2003 and  100%  Foreign  Direct  Investment  (FDI)  in  the  power  sector  in  India  is permitted  for  generation  from  all  sources  (except  atomic  energy).  As  on 30.06.2024,  total  installed  capacity  in  the  country  is  4,46,190  MW  and  out  of which  the  contribution  of  private  sector  is  approximately  2,34,065  MW  i.e. 52.5%. Also, most of the renewable energy projects in the country are being set up by private sector developers selected through a transparent bidding process.

.........2.

- (e) : Major  initiatives  taken  by  the  Union  Government  in  promoting  private sector investment in power generation sector are as under:-
- i. Issued  notification  of  Revised  Tariff  Policy  on  28.01.2016  with  various provisions to encourage investment including from private sector in power generation sector.
- ii. Issued guidelines for procurement of power by DISCOMs from Generators on  Long  Term,  Medium  Term  and  Short  term  basis,  which  in  turn facilitated promoting investment in power generation.
- iii. Issued notification of Electricity (Late Payment Surcharge) Rules 2022 to provide payment  security mechanism  to  generators  for the energy supplied by them.
- iv. Issued notification of Promoting Renewable Energy through Green Energy Open Access Rules 2022.
- v. Setting  up  of  Ultra  Mega  Renewable  Energy  Parks  to  provide  land  and transmission to Renewable Energy (RE) developers for installation of RE projects at large scale.
- vi. Laying of new transmission lines and creating new sub-station capacity under  the  Green  Energy  Corridor  Scheme  for  evacuation  of  renewable power.

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