The Narendra Modi-led Indian government is planning to raise $25 billion through five funds to promote “green energy” sources, according to a report by Mint, an Indian daily, which cited an unnamed government official. The report comes just days after the Modi-led government ramped up its investment target in solar energy to $100 billion -- a significant increase from an earlier target of $100 billion for all types of renewable energy sources -- by 2022.
“We are seeking participation from both public sector and private institutions for setting up these dedicated green funds, given the funding requirements for India’s renewable energy sector,” an unnamed government official told Mint, adding that the plan is still in its initial stages.
India’s National Action Plan on Climate Change, drafted by a special government council, has set a target of generating 15 percent of its domestic power from renewable energy sources by 2020, and Modi has reportedly called for harnessing hydropower, solar energy, biomass and wind power, to bring about an “energy revolution” in the country.
In mid-2012, India suffered a power blackout that was reportedly the largest such incident in world history. About 300 million people across India do not have access to electricity, according to government data. As of now, however, the renewable energy sector, including hydro electricity and solar energy, has a share of about 12 percent, according to government figures. India suffers from chronic power shortage, which is seen as a significant impediment to growth in one of the world's fastest-growing economies.
The Modi government has also faced criticism from environmentalists for relaxing several environmental rules in the last few months and granting clearances to projects that had, in the past, been rejected over fears of causing damage to the country's biodiversity and wildlife, according to media reports.