India hopes to attract over $4bln in green energy

By Biman Mukherji and Krittivas Mukherjee

NEW DELHI (Reuters) - India is hoping to attract investments of more than $4 billion in renewable energy over the next 5-7 years, as it prepares to unveil a new biofuels policy within a month, renewable energy minister Vilas Muttemwar said.

Domestic and foreign companies such as India's Tata group and Reliance Industries as well as state-run utilities are among hundreds of companies vying for a stake in India's emerging green energy sector.

Another 150 companies are also keen to set up biofuel processing plants, Muttemwar told Reuters in an interview.

"A lot of scope is there in the coming days for renewable energy... According to our information, nearly 200 billion rupees ($4.3 billion) is the investment we are expecting in five to seven years," he said during Reuters Global Environment Summit.

The investments span solar, hydro, wind and biofuel energy.

India aims to generate 25,000 megawatts of power from renewable energy over the next four years, more than double the current generation level of 12,000 MW.

Only three percent of India's total power mix is now from renewables, and developing this sector is at the centre of India's national plan on climate change which does not commit to any emission targets.

In spite of its pledge to clean technology, pollution-spewing coal remains the backbone of India's power sector -- accounting for about 60 percent of generation -- with the government planning to add about 70,000 MW in the next five years.