Lok Sabha Question No. 1112 (UNSTARRED), answered on 2024-02-08
Subject: Foreign Investment in Solar Energy Sector
Ministry: NEW AND RENEWABLE ENERGY
Asked by: Ramya  Haridas

## GOVERNMENT OF INDIA MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA

## UNSTARRED QUESTION NO. 1112

ANSWERED ON 08/02/2024

## FOREIGN INVESTMENT IN SOLAR ENERGY SECTOR

## 1112. Ms RAMYA HARIDAS

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

- (a) whether solar power plants have been or are being set up in the country with the help of foreign investment;
- (b)  if so, the details thereof along with the investment made by foreign companies for the said purpose, country-wise;
- (c) whether the Government offers any incentive to promote FDI in solar energy sector and if so, the details thereof; and
- (d)  the other steps taken or being taken by the Government to promote solar power generation in the country?

## ANSWER

## THE MINISTER OF NEW & RENEWABLE ENERGY AND POWER (SHRI R.K. SINGH)

- (a) to (c) Solar power plants are being installed in the country with domestic as well as foreign investments. Foreign Direct Investment (FDI) up to 100 per cent is permissible through automatic route for setting up renewable energy projects, including solar energy projects, in the country. The country-wise details of Foreign Direct Investment (FDI) equity inflows received in the solar energy sector during the last three Financial years and the current Financial year (up to September 2023) are given at Annexure.
- (d) The Government has taken several steps promote solar energy in the country. These inter-alia include:-
- Waiver of Inter State Transmission System (ISTS) charges for inter-state sale of solar and wind power for projects to be commissioned by 30 th June 2025
- Declaration of trajectory for Renewable Purchase Obligation (RPO) up to the year 2030
- Setting  up  of  Ultra  Mega  Renewable  Energy  Parks  to  provide  land  and  transmission  to  RE developers on a plug and play basis
- 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 High Efficiency Solar PV Modules etc
- Laying of new transmission lines and creating new sub-station capacity under the Green Energy Corridor Scheme for evacuation of solar power
- Notification of standards for deployment of solar photovoltaic system/devices
- Setting up of Project Development Cell for attracting and facilitating investments
- Standard  Bidding  Guidelines  for  tariff  based  competitive  bidding  and  bidding  trajectory  for procurement of power from Grid Connected Solar PV 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
- Conducting skill development programmes to create a pool of skilled manpower for setting up, operation and maintenance of solar energy projects

Annexure referred to in reply to part (a) to (c) of Lok Sabha Unstarred Question No. 1112 for 08.02.2024

## COUNTRY-WISE FDI RECEIVED IN SOLAR ENERGY SECTOR IN INDIA DURING THE LAST THREE FINANCIAL YEARS AND THE CURRENT FINANCIAL YEAR TILL 30.09.2023

| Sl. No.   | Country          |   FDI Received (In USD Million) |
|-----------|------------------|---------------------------------|
| 1         | Bermuda          |                           0.202 |
| 2         | British Virginia |                           1.733 |
| 3         | Bulgaria         |                           0.006 |
| 4         | Canada           |                          88.086 |
| 5         | Cayman Islands   |                          78.381 |
| 6         | China            |                          34.955 |
| 7         | Czech Republic   |                           0.88  |
| 8         | Cyprus           |                           0.45  |
| 9         | Denmark          |                          49.38  |
| 10        | France           |                          46.934 |
| 11        | Germany          |                           0.777 |
| 12        | Hong Kong        |                          94.176 |
| 13        | Japan            |                         200.759 |
| 14        | Luxembourg       |                           6.676 |
| 15        | Mauritius        |                         632.523 |
| 16        | Netherland       |                         256.197 |
| 17        | Norway           |                         196.656 |
| 18        | Saudi Arabia     |                          15.763 |
| 19        | Seychelles       |                           0.075 |
| 20        | Singapore        |                         780.781 |
| 21        | South Korea      |                          24.384 |
| 22        | Spain            |                           2.637 |
| 23        | Sweden           |                           0.478 |
| 24        | Switzerland      |                           1.141 |
| 25        | UAE              |                         543.235 |
| 26        | United Kingdom   |                         778.271 |
| 27        | U.S.A            |                          24.623 |
|           | Total            |                        3860.16  |