The Union Budget 2024 has sent a strong signal with a slew of announcements and initiatives aimed at accelerating India’s transition to a low-carbon economy. As the dust settles, industry leaders and experts are weighing in on the budget’s implications for the clean energy sector. From the extension of customs duty exemptions on critical minerals to the push for pumped storage projects, the budget has sparked a mix of optimism and caution among stakeholders. In this article, we gather reactions from the clean energy industry, as they share their thoughts on the budget’s impact on their businesses, the sector’s growth prospects, and the road ahead for India’s sustainable future.
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.”
Vinay Thadani, Director and CEO – Grew Energy Pvt. Ltd
“We are pleased to see the continuation of reforms. As the government emphasizes the 9 priority sectors for the next 5 years, the solar sector has been at the forefront of the government’s efforts to combat climate change and reduce reliance on traditional energy sources.
Furthermore, the introduction of the PM Surya Ghar Yojana is encouraging, as it aims to add 1 crore more households by providing 300 units of free electricity every month.
One positive aspect of this budget is the initiatives to provide financial support for MSMEs to shift to cleaner forms of energy, which will accelerate the growth of solar modules.
The government will further facilitate investment-grade energy audit in 60 clusters, with plans to increase to 100 in the next phase. “We are confident that with adequate support granted by the central government, state government would equally support renewable energy sector to take the nation towards ‘Vikshit Bharat.”
Visweswara Reddy, Chairman & Managing Director – Shirdi Sai Electricals Limited Group
“As anticipated, the 2024 union budget highlights the priority given to the solar and renewable energy sectors. Notably, the PM Suryaghar Muft Bijli Yojana, which aims to install ten million rooftop solar panels, stands out as a significant advancement. This initiative could greatly benefit India’s solar PV module manufacturers. Furthermore, removing solar glass, glass, and copper wire connectors from the custom duty exemption list is a prudent measure. This decision is crucial to supporting the burgeoning domestic industry. Nevertheless, additional efforts are needed to accelerate the full development of manufacturing capabilities, from glass production to panel assembly, which requires urgent support in areas like labor regulations, technology imports, land, and infrastructure. Swift action on these fronts is essential for India to meet its ambitious domestic production targets amidst numerous ongoing projects.
Pumped storage for power is another vital area with the potential for substantial savings and more efficient power generation utilization. We expect the new policy introduced by the Finance Minister in today’s budget to attract further investments and create new opportunities for manufacturers.”
Hanish Gupta, Founder & CEO – Sunkind Energy
“We welcome Finance Minister Smt. Nirmala Sitharaman’s budget that resonates with the spirit of the vision of Viksit Bharat 2047. The budget marks a seminal shift for India’s renewable energy sector. By equipping one crore households with rooftop solar panels through the PM Suryaghar Muft Bijli Yojana, the government is taking a big step toward reducing our reliance on fossil fuels and reshaping our energy future. The expanded exemption for capital goods in solar panel production is an astute move, designed to elevate domestic manufacturing capabilities and make solar energy more affordable. We also appreciate the government’s new initiative to promote job creation in the manufacturing sector and motivate first-time employees to take part and contribute to the growing GDP of the country. These bold initiatives underscore India’s unwavering dedication to its ambitious target of 500 GW of renewable energy by 2030, setting the stage for a brighter, cleaner tomorrow.”
Sachidanand Upadhyay, MD – Lord’s Mark Industries Limited
“Solar energy plays a crucial role in India’s aspirations to generate 500 GW of renewable energy by 2030 given that it is a vital component in the country’s efforts to reduce dependence on fossil fuels and combat climate change. The Union Budget 2024-25 underscores a pivotal commitment to energy security and sustainability. The Finance Minister’s announcement of a forthcoming policy document on energy transition pathways is a significant step towards a greener future. The introduction of the PM Surya Ghar Muft Bijli Yojana is a transformative initiative while investing in rooftop solar systems representing a significant financial commitment by the Government. With 1.28 crore registrations and 14 lakh applications already recorded, this achievement reflects a robust public response and sets a promising precedent for sustainable energy adoption in India. Aligning with India’s commitment to achieving net-zero emissions by 2070, Lord’s Mark Industries is contributing significantly to this vision, recently securing a project to set up 50 MW of grid-connected rooftop solar projects in Uttar Pradesh.”
Tarun Sawhney, Vice Chairman and Managing Director – TEIL
“The Government’s emphasis on renewable energy sources such as solar, thermal, and nuclear, along with the upcoming policy on pumped storage projects for electricity storage, will facilitate the smooth integration of renewable energy into the overall energy mix. This approach will address the variable and intermittent nature of renewable energy, ensuring a stable and reliable energy supply. Further the increased focus on climate finance and tools such as carbon credits would enhance the speed of green transition through improved viability of the Bioenergy sector.
We also commend the Government’s new scheme aimed at incentivizing additional employment in the manufacturing sector. This forward-thinking strategy will not only create job opportunities but also encourage the hiring of fresh talent, driving economic growth and fostering innovation.
Sudheer Perla, MD – Tabreed Asia & Country Manager – India, Tabreed
“Tabreed is encouraged by the Finance Minister’s announcement of a detailed roadmap to pursue nine national priorities, including a strong focus on urban development, infrastructure, and energy security. The emphasis on energy transition pathways, with a focus on employment and sustainability, aligns perfectly with Tabreed’s mission to provide energy-efficient cooling solutions for India’s rapidly growing cities.
As the nation’s energy demand is increasingly being led by our cooling needs, we can help reduce power demand by upto 40% alleviating grid stress through our efficient cost-effective solution. In addition, our transformative systems thinking approach can integrate with renewable energy and reusing resources such as treated wastewater bringing in circularity principles that our country is long familiar with.
We look forward to collaborating with the government and other stakeholders to accelerate the opportunities presented by the new policy framework and contribute to the nation’s progress towards a greener and more prosperous future.”
Tanya Singhal, Founder- Mynzo Carbon and SolarArise
The Union Budget 2024-2025 has introduced several commendable initiatives that align with our expectations in renewable energy, energy storage technology, and promoting climate consciousness to the masses.
1. Introducing a policy to promote pumped storage projects is a crucial development. This policy will facilitate the smooth integration of renewable energy sources into the grid, addressing the intermittency issues associated with solar and wind power. We are eagerly waiting to see the full policy.
2. Expanding the list of exempted capital goods for use in the manufacturing of solar cells and panels in India will further enhance domestic module manufacturing capabilities and reduce the cost of domestic modules, thus driving growth and reducing dependency on imports.
3. The proposed taxonomy for climate finance will enhance the availability of capital for climate adaptation and mitigation projects, supporting the LiFE mission’s goals and providing the necessary capital to incentives green behavior in the masses.
Deepak Pahwa, Director – Bry-Air
“The focus of the budget on sustainability and green energy showcases the country’s commitment to become a net zero economy by 2070. Announcing the taxonomy of climate finance, the government aims to boost the allocation of funds and subsidies promoting innovation in the direction of carbon capture and storage technologies.
Additionally, the exemption of lithium from custom duty will minimize the cost of Li-ion batteries, it can significantly empower the energy storage industry while exhibiting grid resilience for deeper penetration of EVs across the country.”
Meenu Singhal, Regional Managing Director -Socomec Innovative Power Solutions
“Today’s budget announcement marks a pivotal moment for India with funding focus on 9 priorities including Productivity and resilience in Agriculture, Employment & Skilling, Human Resource Development and Social Justice, Manufacturing & Services, Urban Development, Energy Security, Infrastructure, Innovation, Research & Development and Next Generation Reforms generating ample opportunities for all.
This budget paves way for a significant growth towards a ‘Viksit’ Bharat. With one lakh crore fund being allocated for research and innovation, it will help in providing a substantial sustainable growth opportunity for our country by 2047. The policy highlighting on the use of appropriate energy transition will help in balancing the imperatives of employment leading to a more organized growth and environmental sustainability.
The budget’s emphasis on providing skilling programmes will empower the youth in obtaining quality employment opportunities. We appreciate government’s move to reduce the corporate tax for foreign companies from 40 per cent to 35 per cent. This endeavour will improve the overall business environment, making it conducive to foreign direct investments into the country which will create more employment opportunities for the youth and stimulate economic growth. The Angel Tax abolition would also super charge the startup ecosystem”.
AK Tyagi, Founder, Chairman & Managing Director – Nuberg Engineering Ltd.
The Budget 2024 includes bold and progressive measures that deserve praise. In line with the dream of a Viksit Bharat, bringing in a policy paper on energy transition routes is a big move to balance growth environmental protection, and jobs. This complete approach will be key as we deal with the tricky scene of changing our energy use.
Auctioning offshore mineral blocks and creating a policy for electricity storage shows a practical approach to boost our energy infrastructure. These steps, along with efforts to add more renewable energy, will spark new ideas and make the sector more productive.
Working together on R&D for small modular reactors and looking into new tech is important. By putting money into Bharat Small Reactors and modular reactors, the government isn’t just pushing nuclear tech forward, it’s also opening doors for businesses to get involved.
The success of PM Surya Ghar Muft Bijli Yojana and ongoing help for PM Awas Yojana Urban 2.0 show a real dedication to improving lives through better energy access and housing. The planned pumped storage policy will tackle the on-and-off nature of renewables, which you need for a power grid that won’t let you down.
Also, NTPC’s teamwork with BHEL to build an 800 MW plant using AUSC technology marks a big step forward in advanced power generation. Solar power stays a key part of our renewable energy goals, with a clear plan to reach 500 GW by 2030. This shows our dedication to cutting down on fossil fuel use and fighting climate change.
While the measures in Budget 2024 will advance renewable energy initiatives, achieve energy independence, mitigate environmental impacts, and create a resilient energy system for future generations, we wish more had been done to accelerate the development of Green Hydrogen. A greater emphasis on this promising technology would significantly bolster our sustainability efforts and reinforce our commitment to a greener future. This technology holds great promise, and putting more effort into developing it could really strengthen our sustainability goals and show our commitment to a greener future. Our goal is to build on the Budget 2024’s progress by advancing renewable energy and boosting Green Hydrogen development. This will help us achieve 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.”
Mini Nair, Chief Financial Officer – Geojit Financial Services
“This budget aims at harmonizing economic growth with sustainability. The strong foundation laid by the interim budget on renewable energy and green initiatives are carried forward with significant investments.
Substantial investments in employment and skilling for youth, agricultural development, women skilling, focus on urban poor etc are proof of the strong commitments on sustainable growth of the country. Focus on MSMEs and major investments allocated for rural/urban infrastructure will help the inclusive growth of the economy.
The PM Surya Ghar Muft Bijli Yojana and policy to support pump storage projects are great initiatives. Expanding the list of exempted capital goods for solar energy projects is crucial for accelerating the energy transition.
Plans to collaborate with the private sector to establish Bharat Small Reactors, research and development on small modular reactors, taxonomy for climate finance, climate finance for hard-to-abate industries and emerging nuclear technologies are all very welcome move towards establishing the country’s commitment towards addressing the energy security concerns and focus on climate resilience.”
Sumit Kumar, Chief Strategy Officer – TeamLease Degree Apprenticeship
“The recent budget sets a transformative agenda for India’s future, emphasizing green skill development and sustainability. The Finance Minister announced a forthcoming policy document on energy transition pathways that will focus on employment and sustainability, particularly within the solar and wind energy sectors. Central to this initiative is the PM Surya Ghar Muft Bijli Yojana, which aims to install rooftop solar plants and provide free electricity up to 300 units per month to 1 crore households, already attracting 1.28 crore registrations and 14 lakh applications. The budget ensures that the workforce is prepared for the renewable energy sector with training programs designed to equip individuals with the skills to install, maintain, and innovate in solar and wind technologies, creating numerous job opportunities.
Additionally, the budget addresses the need for skilled manpower in both infrastructure and renewable energy sectors through the establishment of a Critical Mineral Mission. This mission will focus on domestic production, recycling of critical minerals, and overseas acquisition of essential assets. By investing in infrastructure projects and developing a skilled workforce, these initiatives aim to create formal job opportunities directly related to infrastructure and renewable energy, as well as in ancillary sectors such as construction, manufacturing, and logistics. Together, these measures are designed to enhance India’s infrastructure, boost renewable energy capabilities, and ensure the nation remains at the forefront of sustainable development and energy security.”
Harsh Shah, CEO – IndiGrid
“We welcome this significant change in rationalization of the long-term capital gain taxation for Business trusts in this budget. InvITs/REITs getting taxed at parity with equities will enhance their attractiveness for investors and will strengthen their position as platforms providing superior risk adjusted returns. We believe that this will also enable InvITs and REITs to become part of stock exchange indices, which will add significant liquidity and momentum.”