In the Union Budget 2024-25, the finance minister announced measures to enhance energy security, including collaboration with the private sector on Bharat Small Modular Reactors and Bharat Small Reactors. The “Energy Transition Pathways” policy will address employment, growth and environmental sustainability challenges, while a new policy will promote pumped storage projects for electricity. A joint venture between NTPC Limited and Bharat Heavy Electrical Limited will set up an 800 MW plant using advanced ultra-supercritical technology. The minister has also announced a roadmap for the transition of hard-to-abate industries from “energy efficiency” targets to “emission” targets with new regulations. The Ministry of Power’s budget allocation is Rs 205.02 billion, a marginal decrease from Rs 206.71 billion in 2023-24, while the Ministry of New and Renewable Energy’s allocation has increased to Rs 191 billion from Rs 102.22 billion.
Here is a quick summary of reactions to Union Budget 2024-25 from power sector leaders….
Pratik Agarwal, Chairman, Serentica Renewables
The budget’s emphasis on energy transition and decarbonisation of hard-to-abate sectors is commendable. Emission goals for hard-to-abate industries, and promoting pumped storage projects, will catalyse this transition. Implementation here will be the key to realising the full potential of this opportunity.
Suhas Baxi, Co-founder and CEO of BioFuelCircle
The goal to invest INR 30.5 lakh crore in renewable energy by 2030 strengthens the pathway towards greener and cleaner energy. The Union Budget 2024’s focus on green energy, digital agriculture infrastructure, and rural enterprises aligns perfectly with BiofuelCircle’s mission. Our digital platform for the bioenergy supply chain uniquely connects rural and industrial economic segments. Supporting small rural enterprises, providing easy access to working capital, and offering competitive financing rates will help drive circular economic practices. Incentivizing the use and production of green fuels and biofertilizers is crucial for India’s energy security and sustainability goals.
Udit Garg, CEO & Director, Kundan Green Energy
In my view the union budget bodes well for the green energy and renewables sector in India. The initial broad-strokes of policy will foster demand while encouraging the industry to increase capacities. This is complemented by steps to augment energy security. The Government ‘s rooftop solar policy is of latitudinal importance and will not only be a boon for power to every home, it will have exponential impact on the country’s renewable agenda helping us leapfrog to goals. Similarly, pumped storage will be a ground resilience for hydropower.
Venkat Garimella, Vice President – Strategy & Sustainability, Greater India, Schneider Electric
The Union Budget 2024-25 underscores the government’s commitment to sustainable nation building, with a pronounced focus on energy transition and youth development. The budget’s support for research & development of newer technologies to speed-up the energy transition, announcement on developing a roadmap for updating the emissions targets of hard-to-abate industries, and overall emphasis on cross-industry energy efficiency, are commendable measures that will build a green economy. Schneider Electric is committed to supporting the government’s sustainability efforts and pave the way for a decarbonised economy. Additionally, FM Sitharaman’s announcement on offering internships to 1 crore youth over five years, with the top companies funding the training costs through their CSR contributions, strategically places the private sector at the forefront. At Schneider Electric, we welcome this strategic approach to promote holistic economic development, which will eventually drive India closer to its sustainability goals.
Mahesh Girdhar, Managing Director and CEO, EverEnviro Resource Management Private Limited
The Union Budget emphasizes productivity and resilience in natural farming as one of its nine priorities, with a significant allocation of Rs. 1.52 lakh crores towards agriculture and allied sectors. Further the establishment of 10,000 need-based bio-input resource centres, and the initiation of 1 crore farmers into Natural Farming, further enhance prospects of sustainable agricultural development across the nation.
Compressed Biogas (CBG) plants produce Fermented Organic Manure (FOM), a vital component for soil health that can be used as an eco-friendly fertilizer to promote regenerative agriculture. This renewed focus of the Government of India on developing the agro-industry presents a remarkable opportunity for all players, including us, to strengthen our contribution to India’s economic development
At EverEnviro, we welcome the special focus on sustainable and resilient agriculture and energy security. The budget presents a promising roadmap towards available, accessible, and affordable energy transition. These initiatives will greatly boost the Compressed Biogas sector’s growth, allowing us to play a pivotal role in driving India towards a more sustainable future.
Srivatsan Iyer, Global CEO, Hero Future Energies
I would like to congratulate the Government for presenting a visionary Budget that focuses on sustainable and inclusive economic growth. I particularly welcome several announcements that reflect the Government’s continued support for the renewable energy sector. The impetus on PM Surya Ghar Muft Bijli Yojana will help fast track nationwide adoption of roof top solar, helping expand our overall RE capacity. The proposed investment in Pumped Storage programmes is a much-needed step that will ensure smoother integration of growing RE, leading to more reliable supply of green power and grid stability. The focus on transitioning hard to abate industries to greener alternatives will catalyze the C&I sector’s journey towards net zero. Introduction of a taxonomy for climate finance will help attract much needed capital for boosting climate resilience. Finally, the expanded duty exemptions will also help propel the RE sector ahead. This is a positive budget for the sector that should help continue the momentum of India’s energy transition and Hero Future Energies remains committed to partnering with the Government in enabling this mission.
Amit Jain, Global Chief Executive Officer – Sterling and Wilson Renewable Energy Group
As a leader in the renewable energy sector, we feel that the recent budget announcement is an acknowledgement of the industry’s huge potential in terms of meeting India’s global sustainability commitments, ensuring the nation’s long term energy security, and providing access to affordable and clean power source for the people. We commend the government’s move to support energy transition by expanding the list of exempted capital goods for use in the manufacture of solar cells and panels in the country. The PM Surya Ghar Muft Bijli Yojana which involves installation of rooftop solar plants to enable one crore households obtain free electricity is a step in the right direction and shall promote a more sustainable future. The announcement to fully exempt 25 critical minerals and reduce BCD on two of them will assist the renewable energy sector, since it shall provide a major fillip to the processing and refining of such minerals and help secure their availability. The proposed policy to promote pumped storage projects for electricity storage will help facilitate smooth integration of growing renewable energy share thereby reducing challenges posed by its variable and intermittent nature. Expansion of India’s renewable energy infrastructure – both greenfield and brownfield will require skilled workforce to ensure efficient project execution, while reducing cost and time overruns. We therefore welcome the government’s focus towards upskilling 20 lakh youth over a 5-year period and upgrading 1000 Industrial Training Institutes.
Amit Jain, CEO and Country Manager ENGIE, India
The government deserves commendation for prioritizing energy security as one of its Nine Priorities in the Union Budget 2024. By focusing on the availability, accessibility, and affordability of energy, the government is laying a strong foundation for a Viksit Bharat by 2047.
The proposed policy document on appropriate energy transition pathways, as announced in the budget, will further address the critical imperatives of employment, growth, and environmental sustainability in India.
The budget has further strengthened the energy transition journey by expanding the list of exempted capital goods for manufacturing domestic solar cells and panels. This will boost domestic manufacturing of solar cells and panels, further secure supply chain and help India achieve its target of 280 GW of solar power by 2030. The proposed policy framework for promoting pumped storage projects will promote hybrid renewable projects, which will be a key step towards ensuring round the clock electricity.
As a global leader in renewable energy, ENGIE India is committed to supporting India’s journey in energy transition and contributing to a more sustainable and greener future.
Girishkumar Kadam, Senior Vice President & Group Head – Corporate Ratings, ICRA Limited
The budget’s focus on measures on green energy continues to reinforce the commitment towards achieving energy transition in the long run. The increased allocation to the solar power sector, including the promotion of the rooftop solar scheme, will aid the renewable capacity addition in the country. Further, the measures to promote the availability of critical minerals are expected to support the development of battery energy storage projects and reduce the cost of storage in the long run. This, along with the policy to promote the development of pumped storage projects, would facilitate the integration of renewables with the grid. However, timely implementation of policy measures remains key.
Naveen Khandelwal, CEO of BrightNight India
The latest budget from Modi 3.0 underscores a strong commitment to India’s economic future, emphasizing energy security and upskilling. While maintaining efforts toward fiscal prudence and consolidation, these priorities are crucial for driving economic growth and achieving our vision of a Viksit Bharat by 2047.
The government’s focus on energy storage is clearly demonstrated by intent for a PSP policy and the reduction of duties on critical minerals, designed to enhance the competitiveness of battery storage. Additionally, support to MSMEs in sunrise sectors through credit schemes for solar cell and panel development is vital for strengthening domestic supply chains and driving job creation. These initiatives represent significant strides toward a sustainable energy future.
However, more support is needed to accelerate the corporate uptake of clean energy. A dedicated green energy fund for corporates could have been a game-changer, fostering faster adoption of renewable solutions. While clear emissions targets for hard-to-abate sectors and the development of a carbon market are important, they remain works in progress, with their success dependent on swift and effective execution. Thermal energy continues to play a crucial role in our growth strategy, but its share must gradually decrease to align with long-term sustainability goals, with a well-defined transition pathway established in a timely manner.
The budget also highlights the crucial role of the private sector in driving India’s next phase of economic growth. The emphasis and support for private-sector R&D to foster innovation and skill development is a welcome step to ensure comprehensive progress.
Overall, this is undoubtedly an inclusive and forward-thinking budget with a strong long-term vision. We remain optimistic about the potential for near-term measures and specific programs that will set India on a high-growth, low-carbon economic trajectory.
Dr Satish Kumar, President & Executive Director, AEEE
The FY25 budget reflects a decisive commitment to sustainability and decarbonisation. Key initiatives such as energy efficiency investments in MSMEs to enhance their competitiveness will be a game-changer, empowering small and traditional industries to embrace green transitions. The strategic shift for ‘hard to abate’ industries from just energy efficiency implementation to GHG emission reduction targets is a forward-thinking move that aligns with global climate goals. We are eagerly anticipating the upcoming policy document on appropriate energy transition pathways, which promises to balance the imperatives of employment, growth, and environmental sustainability. The new centrally sponsored scheme for skilling programmes will also equip our workforce with the necessary tools to drive these initiatives forward. These measures are integral to achieving India’s climate goals, perfectly aligning with AEEE’s mission to enable equitable energy transition and achieve a climate resilient and energy secure future.
Saurabh Kumar, Vice President- India, Global Energy Alliance for People and Planet
The policy-driven emphasis on the energy sector in the Union Budget 2024-25 exemplifies the Government’s commitment to integrating the principles of energy security and energy transition as a cornerstone of Viksit Bharat. We anticipate that the development of energy transition pathways will bolster state-level initiatives aimed at accelerating renewable energy adoption. Furthermore, the proposed financial support for MSMEs to transition to cleaner energy forms will be pivotal in fostering positive change at the grassroots level.
Sunil Mathur, Managing Director and Chief Executive Officer, Siemens Limited
We welcome the Government’s consistent approach towards Fiscal consolidation, supporting Capex in Infrastructure by reconfirming the allocation of Rs.11.11 lakh crore in the Budget as also additional allocations towards improving Urban and Rural Infrastructure. We also welcome the Government’s focus on employment generation, skilling, Woman empowerment, MSMEs and climate change mitigation as well as their encouragement to the States to carry out land and labour reforms and improve Ease of doing Business further. We believe this Budget paves the way for the next generation of reforms which we are confident will lead India to its deserved place of being Viksit Bharat.
Niranjan Nayak, MD, Delta Electronics India
The Union Budget 2024-25 presents a compelling vision for a thriving ‘Viksit Bharat, we at Delta are particularly encouraged by the government’s comprehensive approach that prioritizes skilling, infrastructure development, and digital transformation. The focus on creating a skilled workforce through internship programs aligns perfectly with our own commitment to nurturing talent and driving innovation. We also applaud the budget’s emphasis on increasing women’s participation in the workforce. Initiatives like women’s hostels, creches, and skill development programs are crucial steps towards a more inclusive and empowered society. Delta strongly believes in the power of diversity, and these measures will contribute significantly to India’s socio-economic progress.
Overall, the budget serves as a catalyst for accelerating our growth trajectory and supporting India’s digital transformation journey. Delta’s focus on emerging technologies and domain expertise aligns seamlessly with the government’s vision for a knowledge-based economy. We are excited about the opportunities presented and confident in our ability to play a central role in shaping a ‘Viksit Bharat.’ We look forward to collaborating with all stakeholders to create a sustainable and inclusive growth ecosystem for India’s future.
Venkatesh R., Managing Director & Director Energy Business, Wartsila, India
The Union Budget 2024 presents a promising roadmap towards the Government’s strategy to sustain high and more resource-efficient economic growth, along with energy security in terms of availability, accessibility and affordability. The emphasis on clean and sustainable energy sources is commendable. With this budget, the Government has chartered a path that heavily endorses renewable energy integrations. It will also bring out a policy document on appropriate energy transition pathways that balances the imperatives of employment, growth and environmental sustainability.
These initiatives align with our vision of a sustainable energy future and provide ample opportunities for innovation and collaboration. We look forward to contributing our expertise in flexible power solutions to support India’s journey towards a clean and resilient energy landscape.
Harinder Singh, Managing Director & CEO, Yokohama India
We appreciate the Union Budget 2024 for its emphasis on infrastructure development, job creation, and skill enhancement in the manufacturing sector. The Finance Minister’s introduction of programs focused on skilling and offering employment opportunities for youth represents a significant step towards economic advancement. At Yokohama India, we are particularly encouraged by the focus on diversity hiring and incentives for job creation in manufacturing facilities. These efforts resonate with our dedication to fostering a diverse and inclusive workplace, as demonstrated by our 1,000-strong women workforce across our four plants. The government’s backing of internships and skill development initiatives will equip young people and strengthen our industry, driving innovation and growth. This budget signals a strong vision for India’s manufacturing sector and aligns with our mutual objective of building a resilient and inclusive economy.
Sumant Sinha, Founder, Chairman & CEO, ReNew
The Union Budget 2024 has undeniably taken forward the Prime Minister’s commitment towards India’s clean energy transition. The Finance Minister’s announcement that the Government will release a policy document on India’s energy transition pathway and policy on pumped storage will provide much needed long term clarity for investments across the value chain. The continuation of the PM Surya Ghar Muft Bijli scheme, on the back of an overwhelming response for its subscription, underscores the growing appetite for clean energy solutions among citizens, aligning perfectly with our national sustainability goals.
Additionally, with nuclear energy poised to be a cornerstone of our energy mix, and innovative nuclear technologies being developed in partnership with the private sector, the future looks promising. With continued policy support, accessible financing, and robust public participation, I am confident that we will achieve our renewable energy aspirations for a cleaner, more resilient, and economically vibrant India.
Amit Uplenchwar, Director, Kalpataru Projects International Limited
Energy security and infrastructure have been highlighted as top priorities in the budget proposal by the Hon’ble Finance Minister. Alongside the allocation of INR 11 lakh crore for capital expenditure, the government has pledged to maintain strong fiscal support for infrastructure investment. The provision of INR 1.5 lakh crore for long-term interest-free loans to states for infrastructure development is a positive announcement that will significantly boost state-level projects. It is encouraging to see the government promoting niche areas in the renewable energy ecosystem, such as pumped storage hydro projects and modular nuclear reactors. Moreover, the commitments to enhance private investment in the sector through viability gap funding, enabling policies and regulations, and a market-based financing framework will attract private capital and stimulate business growth within the domestic market. A big thumbs-up to this futuristic budget!
N Venu, MD & CEO, India and South Asia, Hitachi Energy
The Union Budget presented by the Finance Minister took a strategic middle path for FY 24 and democratized growth for the people through modernizing agriculture, jobs in manufacturing, urban development, energy access and energy security. The proposed bill did not single out any specific industry, instead the thrust was on job creation. It focused on the employee-employer experience from incentivising integration of new, young and diverse people into the workforce to using private sector as partners for skilling of future talent. Complemented by spend on the large growing middle class of the economy – urbanization with reliable utilities, low-cost housing, development of access to finance, etc, the budget was geared towards to creating a quality of life fitting to a nation aspiring to be the third largest economy in the world.
Energy transition is at keystone for such reliable inclusive economic growth. The government recognized the same with its focus on developing many pathways to energy transition; from advanced ultra super critical thermal power plants, modular nuclear reactors, to fiscal support of pumped storage and rooftop solar and tax revision of components in the solar value chain. In addition, engagement with private entities in the energy value chain – be it inducing a shift of targets from energy efficiency to emissions, PPP in R&D around new energies, easing access to key minerals or introducing taxonomy for climate finance – are tangible steps towards taking everyone along in the journey to net zero.
Dibyanshu, Partner, Khaitan & Co
Energy: The budget has placed a strong emphasis on energy security as a key priority for “Viksit Bharat”. The continued emphasis on energy transition, along with the recognition of nuclear energy as crucial component of energy mix, is a welcome move. Additionally, the proposal to fully exempt customs duties on 25 critical minerals and reduce Basic Customs Duty (BCD) on two of them, aims to bolster the trust in India’s path towards energy security in the current geopolitical climate.
Infrastructure: The government acknowledges that private sector investments are crucial for India to achieve its development goals. To promote investment in infrastructure, the budget has announced plans to provide viability gap funding and enable supportive policies and regulations. This strategic approach aims to create an environment conducive for private participation in building the necessary infrastructure for the country.