FDI In Renewable Energy Sector— Procedures, Fees And Documents Required

Up to 100% FDI is allowed under the automatic route for renewable energy generation.

Many documents are required for FDI in the renewable sector which are as follows:

• List of names, addresses, and identification proof of all foreign collaborators of the investor company/entity
• From both investor/investee entities- Certification of Incorporation and MoA
• Copy of joint venture agreement/ shareholders agreement/technology
• Copy of downstream intimation
• Copy of relevant past FIPB/SIA/RBI joint with the current proposal
• Copy of Downstream Intimation
• An affidavit to ensure all documents are relevant
• Valuation certification approved by a certified chartered accountant
• CS Certificate
• Declaration by the Authorized Representative of the Indian Company/LLP
• Pre and post-shareholding pattern in the Indian company
• Copy of the order of the High Court on the scheme of merger/ demerger/ amalgamation (if applicable)
• RBI approval on the amount of refund concerning the amount of the issue (if applicable)
• Valuation certificate
• Approval letter (if non-compliant with the guidelines – if applicable)
• Relevant RBI approvals for an issue of equity shares against funds payable to the foreign investor
• FIRC/ Debit statement
• Know Your Customer (KYC)

There are conditions tapping for the procedure of FDI approval which must be understood by investors.

Following are the key advantages derived for investors who invest in renewable energy sector under FDI:

1. Robust Demand - India's capacity for renewable energy grew by 250% between 2014 and 2021. According to the Central Electricity Authority, India's electricity needs would increase to 817 GW by 2030. The real estate and transportation sectors will account for the majority of demand. The Central power Authority estimates that by 2030, India's power consumption will reach 817 GW. The bulk of demand will come from the real estate and transportation sectors.
2. Increasing investment - It is anticipated that growing foreign investment in the renewables sector—like the US$ 75 billion investment from the UAE—will encourage more international investment in the nation.
   Moreover, India's installed renewable energy capacity is expected to reach 174 GW, or almost 37% of the nation's total energy supply, according to the International Energy Agency (IEA). According to the research, India has installed more renewable energy capacity than it was expected to, with 280 GW installed by 2025, above its goal of 175 GW by 2022.
3. Policy Support - The government set out ₹ 19,500 crore (US$ 2.57 billion) for a PLI plan in the Union Budget 2022–2023 in order to increase the production of high-efficiency solar modules. An international programme called Mission Innovation CleanTech Exchange was started by India with the goal of accelerating innovation in clean energy.
4. Competitive Advantage - As of 2021, India was placed fourth in terms of installed renewable energy capacity, wind power capacity, and solar power capacity. In the EY Renewable Energy Country Attractive Index 2021, India remained ranked third.

1. Leading bridge to connect Sustainability goals - The drive towards sustainability leads to bridging sustainable development goals, thereby strengthening the Indian model of renewable energy movement. This push towards finding the technical know-how of resources can make the resources economically feasible and technologically accessible in the world.
2. Technology transfer and expertise - The transfer of expertise between two countries lead to discovering new brands of alternative energies, pushing the renewable ‘idea’ forward that will certainly help to find cure against impoverished environment troubles.
3. Capitalizing large projects - FDI in the renewable energy sector helps to relocate funds in certain projects such as installing windmills, watermills, dams, solar power absorbers, etc. that will eventually led to sustaining innovational movement in the society and thus helps to make people aware about the cause and effect relationships of using traditional fossil fuels.
4. Transfer Of Technology - Fossil fuels are not only limited in nature but also prove hazardous to the ecological niche. In this serious consideration, the government can introduce certain schemes, reforms and initiatives to lower the usage of traditional energy with the help of FDI intervention.

The adoption of alternative sources in the economy not only benefits to achieve sustainable practices and goals but it also places a major contribution in establishing an Indian brand across the continents to combat the problem of limited energy supply and solution to major threats such as rising pollutions, impoverished atmosphere and ailing desert scenario of suburban areas. For this, various stakeholders are engaged in polishing the policies related to environment conservation so as to ensure continuous building of energy supply chains in the economy by meeting capital requirements, certain incentives to enterprises and techniques.

Several other factors to consider for investors while investing in alternative energy industries are listed below:

• Before involving huge investments, applicants must be prerequisites to check the kind of companies the government allows them to invest in. Because investment in the stock market is volatile and may not recover your loss, leading to unwriggled investment which will not recover at the time of redemption of company loss.
• Additionally, before application applicants need to inspect and ensure that all the requisite documents are submitted online without discovering any omissions and incorrect information within the documents. FDI is largely inspired to bring investors forth along with certain advantages that benefit sectors.

Investors must also need to check eligibility criteria for buying investment in India in sectoral companies.