Nuclear Power Gets Boost: Budget 2024 Emphasises Atomic Energy For Future Growth

As the world's most populous country and the fifth largest economy, India is on track to become the third largest by 2030. This rapid economic growth brings a significant increase in energy needs, expected to grow 1.5 times faster than the global average over the next three decades. The current budget has unveiled several initiatives aimed at addressing these demands while promoting sustainability and reducing carbon emissions.

In a strategic shift, this year's budget emphasises nuclear energy as a key component of India's future energy mix. The government is partnering with the private sector to set up Bharat Small Reactors and develop Bharat Small Modular Reactors. These initiatives aim to advance nuclear technology, ensuring a reliable and clean energy source for the nation's growing demands.

Building on last year's budget, which introduced significant green energy initiatives, such as the National Green Hydrogen Mission, with an outlay of Rs 19,700 crore, aims to produce five MMT of green hydrogen annually by 2030. the current budget also continues to support the transition to a low-carbon economy. The budget has presented ‘PM Surya Ghar Muft Bijli Yojana, the scheme aims to install rooftop solar plants for one crore households, providing free electricity up to 300 units per month. The scheme has received a tremendous response, with over 1.28 crore registrations and 14 lakh applications. This initiative is a significant push to reduce household energy costs and promote renewable energy use in the country.

Recognising the need to support smaller enterprises in their energy transition, the budget provides financial assistance to micro and small industries for shifting to cleaner energy sources. An investment-grade energy audit will be facilitated in 60 clusters, with plans to extend this to another 100 clusters in the next phase. This move is expected to enhance energy efficiency and reduce emissions in these traditional industries.

The budget also tries to address the intermittent nature of renewable energy, a new Pumped Storage Policy will be introduced. This policy will promote projects that store electricity and facilitate the integration of renewable energy into the grid. Additionally, the development of Advanced Ultra Super Critical (AUSC) thermal power plants is underway. A joint venture between NTPC and BHEL will establish an 800 MW commercial plant using AUSC technology, supported by government funding.

However, the previous budget's focus on renewable energy evacuation and battery energy storage systems continues to receive support. The construction of an inter-state transmission system for 13 GW of renewable energy from Ladakh, with an investment of Rs 20,700 crore, is underway. The government also assured to promotion of the development of 4,000 MWH battery energy storage systems with viability gap funding.

To support the growing renewable energy and high-tech sectors such as robotics on the assembly line, computer-aided design (CAD) and manufacturing and electronic controls of smelting and refining processes, the budget promises to establish a Critical Mineral Mission. This mission will focus on the domestic production, recycling, and overseas acquisition of essential minerals like lithium, copper, and rare earth elements. Additionally, the first tranche of offshore blocks for mining will be auctioned, building on previous exploration efforts.

“Minerals such as lithium, copper, cobalt and rare earth elements (REE) are critical for sectors like nuclear energy, renewable energy, space, defence, telecommunications and high-tech electronics,” she said while adding, “I propose to fully exempt Customs duties on 25 critical minerals and reduce BCD on two of them.”

India's energy transition strategy aims to balance economic growth, energy security, and environmental sustainability. With initiatives spanning nuclear energy, renewable energy, and support for traditional industries, the country is making significant strides towards a sustainable future. The current budget's focus on innovation, technology, and financial support ensures that India is well-positioned to meet its energy needs while addressing the challenges of climate change.