Trends and Developments of Foreign Direct Investment in Power Sector in India

Abstract

Power is one among the important factor of infrastructure, essential for the economic development and interests of the nation.  The survival and growth of adequate infrastructure is important element of power generation for perpetual development of the Indian economy. Since liberalization period Foreign Direct Investment has been allowed 100 per cent under automatic route with incentives in India.  Inspite of many concessions and incentives have been accommodated to the worldwide famous private companies, in India it has been exited due to various operational and political reasons.  Thus, small sum of FDI only initiated in India. Later, due to the Government policy, it encouraged in private sector from Foreign Direct Investment the needs and wants of power sector is growing rapidly. Hence, the study on importance of the Power sector is essential part in India at the present scenario. This paper identifies the essentials of the power sector and how much it has been benefited from foreign countries.  In order to find out the results of the FDI in various aspects of the power sector, Growth rate,Correlation between Inflows of FDI and Renewable Energy and Non-Renewable Energy sources and Generation of Power and tabled have been used to finalise the results of the study.