Updated on May 06, 2025 02:36:56 PM
The revolutionary belief to turn the modern world towards the era of technology is immensely seen in the current scenario. From running heavy operations to automating heavy tasks which may not be possible to handle by humans alone, technology enables continuous management of work within a short period. Yet, for running such tech-oriented appliances, there is a giant demand for the power which gives rise to voltage in the circuit across the world that has connected the various countries together.
Economic expansion is a key cause of rising energy demand. Global economic growth is fueling an increasing need for energy. This is particularly true in emerging nations where the population is expanding and the level of life is rising. The middle class will see an increase in energy use as more people use it for things like cooking, heating and cooling their homes, and transportation.
In India, there is 48.5% coal installed with the total capacity to hold over 429.96 GW. The hydro installed capacity is over 11% followed by wind, solar and other RE installed capacity which share 31.25% in the Indian economy. The largest nuclear plant in Maharashtra will have a capacity of 9900 MW. India has 240.43 GW of total thermal installed capacity, of which 208.18 GW comes from coal and the remaining amounts from petrol, diesel and lignite.
India's performance, by concern over thermal power outlook, has been transformed its perspective over the course of years by the government intervention. NTPC Ltd, India’s largest integrated power generator, has registered the highest-ever power generation of 400 BU in FY23, a growth of 10.80% via-a-vis previous year.
The Rourkela Steel Plant (RSP) established the 250 MW project of NTPC-SAIL Power Company Ltd to supply steady power to the steel plant, which is essential for economic growth. To help the country to achieve its decarbonisation objectives, NTPC has set the target of using renewable energy sources to account for half of its installed capacity by 2032. The company's non-fossil portfolio saw growth of 24.24% during the fiscal year, FY 23. By 2032, about half of NTPC's portfolio will consist of power capacity that is not based on fossil fuels.
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Following are the objectives of FDI in thermal power sector:
100% FDI allowed under FDI in thermal sector through automatic sector in
49% FDI is permitted in Power Exchanges registered automatically under the Central Electricity Regulatory Commission (Power Market) Regulations, 2010.
Many documents are required for FDI in the renewable sector which are as follows:
Following are the procedures which required at the time of FDI in the healthcare sector:
Applicants must fill out the online application form along with the relevant documents for making out the proposal for Foreign Direct Investment
Filing the proposal for FDI online within two working days, DIPP then will address the concerned administrative ministry to transfer the proposal of applicants electronically
Collect all the requisite documents for continuing the process of the investment proposal. In case documents may be found incorrect, applicants will be held responsible in case of any deviation found.
The DIPP along with potential authorities will process the application internally and recognize various ministries for adding several comments such as the Ministry of Home Affairs, Reserve Bank of India, Ministry of External Affairs, Ministry Of Finances, etc.
There are conditions tapping for the procedure of FDI approval which must be understood by investors.
Following are the key advantages for investors who invests in thermal power sector:
Following are the benefits of FDI for the investors who invests in thermal power sector:
Historically, developing nations have used foreign direct investment (FDI) in thermal power plants to meet their short-term energy demands and obtain access to cutting-edge technologies. The effects of thermal electricity, especially coal plants, on the environment, however, are a big worry. Better uses for foreign direct investment would be in clean technology modernization of already-existing thermal facilities or even in renewable energy sources like wind and solar. This change would support a greener and more sustainable future for the world while guaranteeing energy security for the host nation.
Several other factors to consider for investors while investing in medical industries are listed below:
Investors must also need to check eligibility criteria for buying investment in India in sectoral companies.
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