Steps by Government of India to promote renewable energy


The Government has taken several steps to promote renewable energy, including wind energy, in the country. These include:

  • Permitting Foreign Direct Investment (FDI) up to 100 percent under the automatic route,
  • Waiver of Inter State Transmission System (ISTS) charges for inter-state sale of solar and wind power for projects to be commissioned by 30th June 2025,
  • Declaration of trajectory for Renewable Purchase Obligation (RPO) up to the year 2022,
  • Setting up of Ultra Mega Renewable Energy Parks to provide land and transmission to RE developers on a plug and play basis,
  • Laying of new transmission lines and creating new sub-station capacity for evacuation of renewable power,
  • Setting up of Project Development Cell for attracting and facilitating investments,
  • Standard Bidding Guidelines for tariff based competitive bidding process for procurement of Power from Grid Connected Solar PV and Wind Projects.
  • Government has issued orders that power shall be dispatched against Letter of Credit (LC) or advance payment to ensure timely payment by distribution licensees to RE generators.
  • Conducting skill development programmes to create a pool of skilled manpower for implementation, operation and maintenance of RE projects.

In addition to the above, the following steps have been taken specifically for promoting wind energy:

  • Concessional custom duty exemption on certain components required for manufacturing of wind electric generators.
  • Generation Based Incentive (GBI) is being provided to the wind projects commissioned on or before 31 March 2017.
  • Technical support including wind resource assessment and identification of potential sites through the National Institute of Wind Energy, Chennai.