In the Union Budget 2024-25, the finance minister announced measures to boost energy security, including partnerships with the private sector on Bharat small modular reactors and Bharat small reactors. The “Energy Transition Pathways” policy will focus on employment, growth and environmental sustainability, and a new policy will promote pumped storage projects for electricity. NTPC Limited and Bharat Heavy Electricals Limited will establish an 800 MW plant using advanced ultra-supercritical technology. The minister also outlined a shift for hard-to-abate industries from “energy efficiency” to “emission” targets with new regulations. The budget for the Ministry of Power is Rs 205.02 billion, slightly down from Rs 206.71 billion in 2023-24, while the Ministry of New and Renewable Energy’s allocation increased to Rs 191 billion from Rs 102.22 billion in 2023-24.
A summary of reactions to Union Budget 2024-25 from power sector leaders…
Pratik Agarwal
The budget’s emphasis on energy transition and decarbonisation of hard-to-abate sectors is commendable. Emission goals for hard-to-abate industries and the promotion of pumped storage projects will catalyse this transition. Implementation here will be the key to realising the full potential of this opportunity.
Venkat Garimella
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 the research and development of newer technologies to speed up the energy transition, plans for the development of a road map 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 paving the way for a decarbonised economy. Additionally, the finance minister’s announcement of offering internships to 10 million youth over five years, with the top companies funding the training costs through their corporate social responsibility 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.
Srivatsan Iyer
I would like to congratulate the government for presenting a visionary budget that focuses on sustainable and inclusive economic growth. I particularly welcome the announcements that reflect the government’s continued support for the renewable energy sector. The impetus on the PM Surya Ghar Muft Bijli Yojana will help accelerate the nationwide adoption of rooftop solar, helping expand our overall renewable energy capacity. The proposed investment in pumped storage programmes is a much-needed step that will ensure smoother integration of growing renewable energy, leading to a more reliable supply of green power and grid stability. The focus on transitioning hard-to-abate industries to greener alternatives will catalyse the commercial and industrial sector’s journey towards net zero. The 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 renewable energy sector ahead. This is a positive budget for the sector, which will 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
As a leader in the renewable energy sector, we feel that the recent budget announcement is an acknowledgement of the industry’s significant 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 sources 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 the installation of rooftop solar plants across 10 million households to provide free electricity, is a step in the right direction and will promote a more sustainable future. The announcement to fully exempt 25 critical minerals and reduce basic customs duty on two of them will assist the renewable energy sector by providing 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 the smooth integration of the growing renewable energy share, thereby reducing challenges posed by its variable and intermittent nature. The expansion of India’s renewable energy infrastructure – both greenfield and brownfield – will require a skilled workforce to ensure efficient project execution, while reducing cost and time overruns. Therefore, we welcome the government’s focus towards upskilling 2 million youths over a five-year period and upgrading 1,000 industrial training institutes.
Girishkumar Kadam
The budget’s focus on measures related to 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 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. This, along with the policy to promote the development of pumped storage projects, will facilitate the integration of renewables into the grid. However, timely implementation of policy measures remains key.
Sunil Mathur
We welcome the government’s consistent approach towards fiscal consolidation, supporting capex in infrastructure by reconfirming the allocation of Rs 11.11 trillion in the budget along with additional allocations towards improving urban and rural infrastructure. We also welcome the government’s focus on employment generation, skilling, women empowerment, micro, small and medium enterprises and climate change mitigation, as well as their encouragement for states to carry out land and labour reforms and further improve the ease of doing business. We believe this budget paves the way for the next generation of reforms, which we are confident will lead India in achieving Viksit Bharat.
Niranjan Nayak
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 prioritises skilling, infrastructure development and digital transformation. The focus on creating a skilled workforce through internship programmes 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 such as women’s hostels, creches and skill development programmes 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 the country’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 in creating a sustainable and inclusive growth ecosystem for India.
Venkatesh R.
The Union Budget 2024 presents a promising road map 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 Charted a path that heavily endorses renewable energy integration. It will also bring out a policy document on appropriate energy transition pathways that balance 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.
Sumant Sinha
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 pathways 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 Yojana, 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
Energy security and infrastructure have been highlighted as top priorities in the budget proposal by the finance minister. Alongside the allocation of Rs 11 trillion for capital expenditure, the government has pledged to maintain strong fiscal support for infrastructure investment. The provision of Rs 1.5 trillion for long-term interest-free loans to states for infrastructure development is a positive step 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
The Union Budget presented by the finance minister took a strategic middle path for FY24, democratising growth for the people through the modernisation of agriculture, job creation in manufacturing, urban development, and enhancing energy access and energy security. The proposed bill did not single out any specific industry; instead, the emphasis was on job creation. It focused on the employee-employer experience, from incentivising the integration of new, young and diverse people into the workforce to collaborating with the private sector for skilling future talent. Complemented by investments targeting the large, growing middle class of the economy – focusing on urbanisation with reliable utilities, low-cost housing, improved access to finance, etc. – the budget aims to enhance the quality of life fitting for a nation aspiring to become the third largest economy in the world.
Energy transition is the cornerstone for such inclusive economic growth. The government recognised this by focusing on developing pathways to energy transition – from advanced ultra-supercritical thermal power plants and modular nuclear reactors to fiscal support for pumped storage and rooftop solar, as well as tax revisions for components in the solar value chain. In addition, engagement with private entities – be it shifting targets from energy efficiency to emissions, fostering public-private partnerships in research and development of new energies, easing access to key minerals or introducing a taxonomy for climate finance – are tangible steps towards inclusive progress on the journey to net zero.