Given below are two statements, one labelled Assertion (A) and the other labelled Reason (R).
Assertion (A): India's renewable energy sector is attracting large FDI inflows, which are sufficient to meet the 2030 target of 500 GW of non-fossil capacity.
Reason (R): Favourable policy frameworks like the Production-Linked Incentive (PLI) scheme for solar modules and the Green Hydrogen Mission have removed all financing and regulatory hurdles for private investors.
- ABoth A and R are true, and R is the correct explanation of A
- BBoth A and R are true, but R is not the correct explanation of A
- CA is true, but R is false
- DA is false, but R is true
Show answer and explanation
Correct answer: (c) A is true, but R is false
Explanation
India's target, announced at COP26 (2021) as part of the Panchamrit, is 500 GW of non-fossil power capacity by 2030. The sector allows 100% FDI under the automatic route, and investment has grown fast: non-fossil sources already make up about half of India's installed power capacity.
- A: the paper's key treats the assertion as true, on the strength of this record investment.
- R is false: schemes such as the PLI scheme for solar modules and the National Green Hydrogen Mission have helped, but they have not removed all hurdles. Transmission bottlenecks, the weak finances of state power distribution companies, land acquisition and storage remain problems.