FDI Inflows to Non-conventional Energy

Abstract:

The FDI Inflows to Non-conventional Energy has helped the Non-Conventional Energy sector to develop its infrastructure. The Non-conventional Energy sources are abundant in India and so are the possibilities of growth in this sector.

FDI Inflows to Non-conventional Energy played an important part in the developing the required infrastructure for tapping Non-Conventional Energy from various sources.The Non-Conventional Energy sources such as Wind, Solar Thermal, Solar Photo-voltaic, Small Hydro, Co-generation, Biomass, Tidal, Geothermal and Urban & Industrial Wastes have huge potential of providing clean energy without causing pollutions.

FDI Inflows to Non-conventional Energy - Government Initiatives

• The Central Government has formulated the Foreign Direct Investment Policy, pertaining to the Non-Conventional Energy sector The foreign investors are entitled to indulge in joint operations with Indian counterparts through technological and financial collaborations for establishing renewable energy based power generation projects.


• The process of foreign investment approval has been liberalized with the aim of providing transfer of technology and foreign financial investments by means of joint ventures.


• FDI up to 100% is allowed in case of equity.


• The Central Government has been encouraging foreign investors to establish renewable energy based power generation project on Build-Own-Operate basis.

FDI Inflows to Non-conventional Energy - Yearly

• In the year 2003, the number of approvals were 101, out of which 15 were technical and 86 were financial, the amount of FDI approved was ` 54175.20 million and the percentage of contribution towards total FDI was 1.89 % pertaining to the Power (Others) sector.


• In the year 2004, the number of approvals were 36, out of which 3 were technical and 33 were financial, the amount of FDI approved was ` 48744.97 million and the percentage of contribution towards total FDI was 2.69 % pertaining to the Power (Others) sector.

FDI Inflows to Non-conventional Energy - Opportunities

Important aspects of opportunities of Foreign Direct Investments (FDI) in non-conventional energy are -

• Investment opportunities are available for various types of investors and users


• Foreign investors have opportunities of investing in renewable energy - Wind, Solar Photo-voltaic, Solar Thermal, Small Hydro, Biomass, Co-generation, Geothermal, Tidal and Urban & Industrial Wastes based power projects.


• Foreign investors investing can invest in non-conventional energy for their utilization in India and also for exports to developing and third world countries.

Last Updated on 4/23/2011