Govt permits 100% FDI through automatic route in RE projects
The Government is setting up Project Development Cell for attracting and facilitating investments for Ultra Mega Renewable Energy Parks, laying of new transmission lines and creating new sub-station capacity for evacuation of power.
Giving this update to parliament, Minister of Power and MNRE R K Singh told Lok Sabha on 8 Dec 2022 that the Government is permitting 100% Foreign Direct Investment (FDI) under the automatic route.
Other incentives and initiatives 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 June 2025;
Declaration of trajectory for Renewable Purchase Obligation (RPO) up to the year 2030;
Standard Bidding Guidelines for tariff based competitive bidding process for procurement of Power from Grid Connected Solar PV and Wind Projects;
The 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;
Notification of Promoting Renewable Energy through Green Energy Open Access Rules 2022;
Notification of Late Payment Surcharge and related matters Rules 2022.
In addition to the above, the following steps have been taken specifically for promoting wind energy:
Declaration of trajectory for Wind Renewable Purchase Obligation (Wind RPO) up to the year 2030;
Concessional custom duty exemption on certain components required for manufacturing of wind electric generators;
Generation Based Incentive (GBI) is being provided to the wind projects commissioned on or before 31 March 2017;
Technical support including wind resource assessment and identification of potential sites through the National Institute of Wind Energy, Chennai. fiinews.com
