The Indian Government has announced ambitious plan to add around 1,00,000 MW of additional generation capacity by the year 2012. To attract private investment of such magnitude, Govt. of India had taken various steps to provide for an adequate administrative & legal framework.
The Ministry of Power has formulated a blueprint to provide reliable, affordable and quality power to all users by 2012. This calls for investment of US$ 73 billion in the next five years. Opportunities are there for investment in power generation and distribution and development of non-conventional energy sources.
100% Foreign Direct Investment is allowed under automatic route in power sector. FDI is allowed upto 100 % in respect of projects relating to electricity generation, transmission and distribution, other than atomic reactor power plants. There is no limit on the project cost and quantum of foreign direct investment.