India has allowed 100% Foreign Direct Investment (FDI) under the automatic route in the power sector (except atomic energy), subject to all the applicable regulations and laws.
The obvious reasons, if given, for making investment in India under this sector are:
India has 123 Billion Tonnes of proven coal reserves.
It has 1,355 Billion Cubic Metres of proven natural gas reserves.
India is the fifth largest producer of electricity.
It is also the fifth largest consumer of electricity.
There is visible expansion in industrial activity to boost demand for electricity.
As a country with growing population it is likely to boost demand for energy.
It increasing market penetration and per-capita usage will provide further impetus to the energy industry.
Large capacity additions (174.9 GW) are targeted upto 2022.
Ambitious projects and increasing investments across the value chain are proposed.