Question : Investment in NRE Sector

(a) the details of foreign and domestic investment in the New and Renewable Energy (NRE) sector in the country during the last four years and the current year, country and State/UT-wise;

(b) the details of the steps taken by the Government to attract investments from both within the country and overseas with a view to add additional power and to meet the target set for generation of power through renewable energy sources;

(c) whether any consultation has been held with the Ministry of Finance for providing certain additional incentives to this sector and if so, the details thereof; and

(d) the details of the private sector companies that are partnering with Government and co-investing in R&D and technology development?

THE MINISTER OF STATE FOR NEW & RENEWABLE ENERGY AND POWER (I/C)
(SHRI R.K. SINGH)

(a) A total of 37.83 GW of renewable energy capacity has been added in the country during the last four years and the current year (up to October 2018) with an estimated investment of about Rs 196 thousand crore. As per Department of Industrial Policy & Promotion, the details of country-wise and State/UT-wise Foreign Direct Investment (FDI) equity inflows received in the renewable energy sector in the country during the last four years and the current year are given at Annexure.

(b) The Government have taken various steps to attract investments from both within the country and overseas with a view to increase generation from renewable energy sources. These inter-alia, includes fiscal and promotional incentives such as capital subsidy, accelerated depreciation, waiver of Inter State Transmission System (ISTS) charges and losses, Viability Gap Funding (VGF) and permitting Foreign Direct Investment up to 100 per cent under the automatic route. Also, to ensure cheaper generation of renewable power, projects are awarded through transparent bidding process i.e. through e-reverse auction. Government has also issued standard bidding guidelines to enable the distribution licensees to procure power at competitive rates in cost effective manner.

(c) The Ministry has approached Ministry of Finance for providing incentives to renewable energy sector, such as, Goods & Services Tax (GST) at concessional rate of 5% for renewable energy generating systems.

(d) National Institute of Solar Energy (NISE) an R&D institution of this Ministry has been partnering with private sector companies such as Mahindra & Mahindra, Tata Motors, VS Saurya Enertech, etc. for technology development in field of solar energy and hydrogen fuel cells.
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