India allows 100 per cent FDI in renewable energy: Abdullah

The government allows 100 per cent foreign direct investment (FDI) in the renewable energy sector and has put in place a conducive policy to attract foreign companies in the sector.

"100 per cent FDI is allowed in renewable energy sector and structures have been put in place to facilitate power trading, open access etc," minister of new and renewable energy Farooq Abdullah said in the Rajya Sabha today.

The government, he said, has formulated a generation-based incentive scheme in wind power projects, especially for the foreign investors, who cannot avail of benefits of the accelerated depreciation as in the case of domestic investors.

He said the government has distributed or installed over two million solar energy-run appliances across the country under the solar energy programme.

"About 7.7 lakh solar lanterns, 5.1 lakh solar home lighting systems, 82,500 solar street lighting systems, 7,247 solar water pumping systems, stand-alone and grid-connected (SPV) power plants of about 10 MW peak capacity, about 3.12 million square meter solar water heater collector area and 6.57 lakh solar cookers have been distributed or installed in the country till 30 November this year," Abdullah said.

The present cost of electricity generation from solar thermal and solar photovoltaic energy systems is Rs13.45 and Rs18.44 per unit respectively, as fixed by the Central Electricity Regulatory Commission, he pointed out.