Power industry in India is very lucrative for NRIs

Power industry in India is very lucrative for NRIs

The power sector in India has undergone significant progress after Independence. When India became independent in 1947, the country had a power generating capacity of 1,362 megawatt (MW). It is now one of the fastest growing economies with ever increasing demand representing an attractive destination for the power industry. The Indian power sector will add nearly 45,000 MW to its total installed capacity by 2013-14 to the existing production, according to a RNCOS research report, 'Indian Power Sector Analysis'.

Investment options in Indian power industry

The investment climate is very positive in the power sector. Due to the surge in the sector, it has witnessed higher investment flows than envisaged. The Ministry of Power has sent its proposal for addition of 76,000 MW of power capacity in the Twelfth Five Year plan (2012-2017) to the planning commission. The ministry has set a target for adding 93,000 MW in the Thirteenth Five Year Plan (2017-2022).The industry attracted foreign direct investment (FDI) worth Rs 172.80 crore (US$ 31.57 million) in the month of May 2012.The Government of India has initiated several reform measures to create a favourable environment for the newly added generating capacity in the country and attract investments from the overseas Indians. The policies and reforms have put in place a highly liberal framework for generation of power in the country.

Government initiatives to boost Indian power sector

Growth scenario of Indian power sector