Budget 2024-25: India boosts renewable energy funding

NEW DELHI: In a move to support the renewable energy sector, Finance Minister Nirmala Sitharaman has allocated Rs 19,100 crore to the Ministry of New and Renewable Energy in this budget session of 2024-25. This marks an increase from the Rs 12,850 crore allocated in the Interim Budget in February. The revised estimates for the Budget 2023-2024 stand at Rs 7,848 crore.

In the Budget 2024-2025, the government has earmarked Rs 8,500.35 crore for grid-connected solar power, marking an increase of almost 79 per cent from the revised estimates for the Budget 2023-2024. In total, the solar energy sector has been allocated Rs 16,394.75 crore in the latest budget, compared to the revised estimates of Rs 6,041.56 crore in the Budget 2023-2024.

While presenting the Union Budget, Finance Minister Nirmala Sitharaman said, “Energy transition is critical in the fight against climate change. To support the energy transition, I propose to expand the list of exempted capital goods for use in the manufacture of solar cells and panels in the country. Further, in view of sufficient domestic manufacturing capacity of solar glass and tinned copper interconnect, I propose not to extend the exemption of customs duties provided to them.”

In addition, the government allocated Rs 851 crore to the wind and other renewable energy programmes in the Union Budget against the revised estimates of Rs 946.30 crore. The government will also spend Rs 600 crore on the National Green Hydrogen Mission. Bioenergy programme received an allocation of Rs 300 crore from the Budget 2024-25 against Rs 75 crore last year.