| THE
share of private sector investment in new capacity addition has
increased from 9.1% in the 10 th Plan to 41.9% in the 11 th Plan. As per
extant policy, Foreign Direct Investment (FDI) up to 100% is permitted
in power sector, under the automatic route for generation, transmission
and distribution.
Recently,
the Government has liberalized the FDI policy for Power Trading
Exchanges. Foreign Investment in power exchanges registered under the
Central Electricity Regulatory Commission (Power Market) Regulations,
2010 allowed up to 49% through automatic route.
Details
of private sector investment from 2009-10 to 2012-13, based on
information available with Central Electricity Authority (CEA), are as
below:
|
( in Rs.crore )
|
|
Year
|
2009-10
|
2010-11
|
2011-12 (P)
|
2012-13 (P)
|
|
Total
|
48132.04
|
81853.88
|
98283.23
|
54953.02
|
Moreover, the Union Budget enumerates Government's efforts to promote private investment. Some of these include:
++
India Infrastructure Finance Co. Ltd provides long-term financial
assistance to infrastructure projects through take-out finance,
re-finance of bank loans and credit enhancement.
++
Investment in tax-free long-term infrastructure bonds was permitted
since 2010-11 and continues in a limited fashion in 2013-14.
++
The ceiling of foreign institutional investment in corporate
infrastructure bonds of over 5-year maturity has been enhanced to US $25
billion in 2011-12.
++
ECBs can be raised for investment by imports of capital goods, new
projects, modernization and expansion of existing production units.
++ The sunset date to claim 10-year tax holiday for power projects has been extended to March 31, 2014.
++ Infrastructure Debt Funds have been launched to raise resources.
++ A Cabinet Committee on Investment monitors investment proposals and projects under implementation.
++
15% investment allowance is allowed to be deducted by companies investing
over Rs 100 cr. in plant and machinery during 2013-15.
Government
of India has also taken a number of legislative, policy and
administrative measures to enhance private participation in the power
sector. Some of these measures in the last few years have been:
i. Enactment of new Electricity Act, 2003.
ii. De-licensing of thermal generation. Further captive generation is freely permitted.
iii. Formation of Central & State Regulatory Commissions
iv. Development of National Grid.
v. Open Access in Transmission & Distribution
vi. Power trading being recognized as a distinct activity.
vii. Issue of guidelines for competitive bidding for procurement of Power by distribution licensees under the Electricity Act.
viii. Notification of Tariff Policy
ix. Notification of National Electricity Policy
x. Notification of the Hydro Policy, 2008
xi. Ultra Mega Power Plants (UMPP) initiative
This
information was given by MoS (I/C) Power Sh.Jyotiraditya, M. Scindia in
a written reply in the Rajya Sabha yesterday.
|
