As the preparation for budget is at its full pace, Union Finance Minister Nirmala Sitharaman on Tuesday participated in the Halwa ceremony marking the final stage of the budget preparation for Union Budget 2024-25 on July 23. The industry leaders are expecting various reforms, bold measures and continuation of the work from the Modi Government for India’s energy needs.
“We as an industry, expect a continuation of the work that this government has been doing on climate action, especially on the policy side but at a faster pace. We also anticipate bold measures that reinforce India's commitment to environmental sustainability and climate action. The Modi government has made significant strides with initiatives like the National Clean Air Programme, National Green Hydrogen Mission, and ambitious renewable energy targets,” said Manish Dabkara, Chairman and MD of EKI Energy Services.
He added that to accelerate progress, the budget is likely to prioritise investments in green infrastructure, including grid modernisation and energy storage solutions beyond Lithium. Enhancing manufacturing subsidies for renewable energy, particularly solar and wind, will be crucial in maintaining momentum towards our 2030 and 2070 goals. Offshore wind is another important potential yet to be tapped commercially. The budgetary allocation should prioritise Offshore wind-connected Green Hydrogen facilities in coastal Tamil Nadu, Karnataka and Gujarat, he stated.
The Union Cabinet, chaired by Prime Minister Narendra Modi, in June this year approved the Viability Gap Funding (VGF) scheme for offshore wind energy projects at a total outlay of Rs 7,453 crore, including an outlay of Rs 6,853 crore for installation and commissioning of 1 GW of offshore wind energy projects (500 MW each off the coast of Gujarat and Tamil Nadu) and grant of Rs 600 crore for upgradation of two ports to meet logistics requirements for offshore wind energy projects.
The VGF scheme is a major step towards implementation of the National Offshore Wind Energy Policy notified in 2015 with an aim to exploit the vast offshore wind energy potential that exists within the exclusive economic zone of India.
“The government should continue its focus on targeting 50 GW annual bidding for Solar & Wind projects over till 2028 and further enhance its sustainable financing to support RE growth, particularly in areas of distributed RE installations and localising the supply chain. We further expect a substantial boost in budgetary allocation of rooftop solar installations. India's renewable energy sector is poised for a strong growth ahead,” said Pradip Kumar Das, CMD, IREDA.
He added that the availability of an adequate quantum of financing at competitive rates will be critical for the actualization of this market as the cost of finance significantly affects the viability of energy projects.
Presenting the interim budget for FY25 on 1 February, FM Nirmala Sitharaman officially launched PM Surya Ghar: Muft Bijli Yojana and said that the ten million beneficiaries of the new scheme would be able to get 300 units of free power through the rooftop solar installations, resulting in an annual saving of Rs 15,000 to 18,0000 per year.
“The 2024 union budget should prioritise investments in sustainable infrastructure projects and clean energy solutions as 70 per cent of greenhouse gas emissions stem from energy, industry, and buildings . This will create a future-proof foundation for economic growth and help in achieving net zero targets. Infrastructure is crucial in addressing climate change and meeting diverse societal needs. A transformative overhaul of our current and future infrastructure assets is essential,” said Aditi Balbir, Co-founder, EcoRatings.
As India gears up for Budget 2024, the industry leaders' calls for bold, transformative measures reflect a unified vision for accelerating the nation’s clean energy transition. The emphasis on modernizing the grid, investing in advanced energy storage solutions, and bolstering offshore wind projects underscores the urgency of addressing climate change while ensuring sustainable economic growth.
By prioritising green infrastructure and sustainable financing, the budget has the potential to catalyse significant advancements in renewable energy and climate action. These steps will not only reinforce India's commitment to its ambitious environmental targets but also lay the groundwork for a resilient and future-ready energy landscape.
As the Union Finance Minister prepares to finalise the budget, the anticipation of a forward-thinking, comprehensive approach to energy and infrastructure investments remains high, with the hope that it will steer the country towards a greener and more sustainable future.
