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India gets $3.8 billion FDI in solar sector in last three FYs: MoS Bhagwant Khuba


India has attracted a total of $3.8 billion in foreign direct investment (FDI) in the solar energy sector over the past three financial years and the current financial year until September 2023, according to Bhagwant Khuba, Minister of State for Ministry of New and Renewable Energy, and Chemicals and Fertilisers.

Khuba highlighted that both domestic and foreign investors were contributing to the installation of solar power plants in the country. This increase in FDI is a testament to the confidence investors have in India’s solar energy sector.

The Minister shared this information in a video message during the third edition of ETEnergyWorld’s Solar Power Congress 2024, held on March 6, 2024. He further mentioned that setting up renewable energy projects, including solar energy projects, can benefit from up to 100% FDI through the automatic route. This move aims to encourage the growth and development of the renewable energy sector in India.

Khuba emphasized that these are exciting times for the renewable energy industry in the country, as it is on the brink of a major revolution. The Indian government has implemented various measures to promote solar energy, such as waiving ISTS charges for renewable energy projects commissioned by June 30, 2025. Additionally, a trajectory for renewable purchase obligation up to 2030 has been declared, and ultra-mega renewable energy parks have been established to provide land and transmission to renewable energy developers.

The Minister also highlighted the launch of several groundbreaking schemes, including PM-KUSUM, solar rooftops phase-II, 12,000-MW CPSU scheme phase-II, and a production-linked incentive scheme for higher efficiency solar PV models. These initiatives have contributed to a significant increase in India’s installed solar power generation capacity, which has risen from 2.8 GW in 2014 to over 73 GW at present.

Khuba further mentioned that in the past two financial years, India has consistently added over 12 GW of solar power generation capacity. This momentum of growth is expected to continue in the current year as well. He noted that under the production-linked incentive scheme for high-efficiency solar PV models, letters of award have already been issued for the establishment of 48 GW of fully or partially-integrated solar PV module manufacturing capacity in India. These capacities are scheduled to be commissioned between October 2024 and April 2026, with four companies already beginning partial production under this scheme.


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