The energy sector in India is one of the most diversified fields in the world. Sources for power generation range from commercial sources like coal, lignite, natural gas, oil, hydro and nuclear power to other viable non-conventional sources like wind, solar and agriculture and domestic waste. The demand for electricity in the country has been growing at a rapid rate and is expected to augment further in the years to come. In order to meet the increasing requirement of electricity, massive addition to the installed generating capacity in the country is required.
Renewable energy is the new keyword in Indian energy sector and most of the public and private players are coming up with plans to tap the potential market, on the back of favourable Government policies and initiatives. To tap the underlying potential, various Indian States are focussing on those aspects of energy, in which they have an edge, such as solar power, wind power, hydro power etc.
India has been one of the top performing clean energy economies in the 21st century, registering the fifth highest five-year rate of investment growth and eighth highest in installed renewable energy capacity, according to a research report released by The Pew Charitable Trusts.
Investment Opportunities in Indian Energy Sector
The investment climate is very positive in the power sector. The sector has witnessed higher investment flows than envisaged and offer huge investment opportunities for non-resident Indians (NRIs)/person of Indian origin (PIOs). The Ministry of Power is believed to have sent its proposal for addition of 76,000 megawatt (MW) of power capacity in the Twelfth Five Year plan (2012-17) to the Planning Commission. Energy sector in India is expected to generate revenue of about Rs 13 lakh crore (US$ 246.27 billion) during the Twelfth Five Year plan, according to Shri P Uma Shankar, Union Power Secretary. He said that the Government is looking at revenue estimates of Rs 2.5 lakh crore (US$ 47.36 billion) from transmission and Rs 4 lakh crore (US$ 75.78 billion) from distribution, in addition to Rs 6.5 lakh crore (US$ 123.15 billion) from generation.
The Government has initiated several policies to promote and garner investments from NRIs/PIOs in the power sector. To accelerate capacity addition, several policy initiatives have been undertaken by the Ministry of Power. The National Electricity Policy (NEP) in fact, stipulates power for all and annual per capita consumption of electricity to rise to 1,000 units by 2012. Foreign direct investment (FDI) up to 100 per cent is permitted under automatic route for projects of electricity generation (except atomic energy), transmission, distribution and power trading.
The power sector in India is witnessing a growth trajectory. The Government has taken several steps required to provide investment opportunities and to develop power sector infrastructure within a short span of time. In fact, the State Electricity Board is going to renovate all the current power plants with the help of private partners.
Renewable energy is the new keyword in Indian energy sector and most of the public and private players are coming up with plans to tap the potential market, on the back of favourable Government policies and initiatives. To tap the underlying potential, various Indian States are focussing on those aspects of energy, in which they have an edge, such as solar power, wind power, hydro power etc.
India has been one of the top performing clean energy economies in the 21st century, registering the fifth highest five-year rate of investment growth and eighth highest in installed renewable energy capacity, according to a research report released by The Pew Charitable Trusts.
Investment Opportunities in Indian Energy Sector
The investment climate is very positive in the power sector. The sector has witnessed higher investment flows than envisaged and offer huge investment opportunities for non-resident Indians (NRIs)/person of Indian origin (PIOs). The Ministry of Power is believed to have sent its proposal for addition of 76,000 megawatt (MW) of power capacity in the Twelfth Five Year plan (2012-17) to the Planning Commission. Energy sector in India is expected to generate revenue of about Rs 13 lakh crore (US$ 246.27 billion) during the Twelfth Five Year plan, according to Shri P Uma Shankar, Union Power Secretary. He said that the Government is looking at revenue estimates of Rs 2.5 lakh crore (US$ 47.36 billion) from transmission and Rs 4 lakh crore (US$ 75.78 billion) from distribution, in addition to Rs 6.5 lakh crore (US$ 123.15 billion) from generation.
The Government has initiated several policies to promote and garner investments from NRIs/PIOs in the power sector. To accelerate capacity addition, several policy initiatives have been undertaken by the Ministry of Power. The National Electricity Policy (NEP) in fact, stipulates power for all and annual per capita consumption of electricity to rise to 1,000 units by 2012. Foreign direct investment (FDI) up to 100 per cent is permitted under automatic route for projects of electricity generation (except atomic energy), transmission, distribution and power trading.
The power sector in India is witnessing a growth trajectory. The Government has taken several steps required to provide investment opportunities and to develop power sector infrastructure within a short span of time. In fact, the State Electricity Board is going to renovate all the current power plants with the help of private partners.
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