Singapore, UK, Mauritius, UAE Biggest Solar Investors In India: R.K Singh

Singapore, UK, Mauritius, UAE Biggest Solar Investors, In India: R.K Singh

The union minister of new and renewable energy, R.K Singh shared details of the solar investment received within the by India in the last three years i.e., from 2020 – September 2023. He stated, “Indian solar sector has received 3860.158 million investments through foreign direct investment (FDI) within the country till 30th September 2023.”   India has DTAA or Double Tax Avoidance Treaties with all these countries in place, enabling higher investments from there. 

He also said, “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)”

His written reply to the parliament, reveals data of the top four states that received the highest FDI received in 2023. 

Top Three Highest Source Of FDI In Renewable Sector In India in 2023

The minister shared data of the 27 countries that are the highest source of solar foreign direct investment (FDI) in the solar sector within the country. It mentioned that overall, there are 27 countries that provide 3860.158 Mn investment to India. Based on the data shared by the minister in the written reply revealed the top 4 countries that constitute the biggest source of investment, i.e., Singapore – 780.781, United Kingdom (UK) – 778.271, Mauritius – 632,523, and UAE – 543.235.  

Top Four Countries And FDI Received in 2023

Among the total 27 countries those which are the lowest Sources of FDI to the solar sector in India are – Sweden – 0.478, Seychelles – 0.075, Germany – 0.777, Cyprus – 0.450, Czech Republic – 0.880 and Bulgaria – 0.006

The Government has taken several steps promote solar energy in the country, this 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 30th 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