Trends in FDI inflows into India-A study of power sector

The Indian power sector is one of the most diversified sectors in the world. With the production of 1006 TWH India is the 5th largest producer and consumer of electricity in the world. The demand in 2012 was 969.0 TWH (terawatt hours) and it is likely to increase boundless in the coming years i.e in the year 2022 it is estimated to be 1915.0 TWH due to expected growth in the economy. In Indian economy highest priority is given to the power sector in comparison with other sectors because it offers tremendous potential to other investing companies in terms of increasing demand for goods and services based on the expansion of market and the returns available on investment of capital. It is considered as the key infrastructure required for the growth of economy.

Total FDI inflows into power sector touched US$ 7.8 billion in April 2000-March 2013 accounting for 4% of the total inflow in India. The present paper focuses on trends in growth of electricity demand and supply, generation capacities of Indian Power Sector. It also highlights the govt policy initiatives in effective performance of inflows in power sector. One of the objectives of the paper is to study the trends in FDI inflows in Indian power sector. The information relevant for the study is collected by using secondary sources.