The Indian government on Monday said 100% Foreign Direct Investment or FDI would be allowed in the renewable energy sector. It has formulated a conducive policy to attract foreign companies in power trading, open access etc., media reports say.
New and Renewable Energy Minister, Farooq Abdullah said in New Delhi in reply to a Rajya Sabha (Upper House of the Parliament)query that the government had approved a generation-based incentive scheme in wind power projects, especially for the overseas investors, who deprived of the benefits of the accelerated depreciation, available to domestic investors.
Replying to another query, the Minister said over two million solar energy-run appliances were installed across the country under the solar energy programme.
He added that presently the solar energy systems were not commercially viable due to their initial high costs and the Ministry has been providing various fiscal and financial incentives for promoting these systems.
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