Union budget 2023-24 focusses on green growth

In the union budget 2023–24, the Indian finance minister stated that India is making rapid progress toward achieving its net zero targets by 2070. The budget builds on a focus on green growth. The key points related to renewable energy sector as the following:

  • The National Green Hydrogen Mission will make it easier for the economy to transition to one with a low carbon intensity and less reliance on   imported fossil fuels. The National Green Hydrogen Mission has been given a budget of Rs 197 billion and will aid in the transition of the economy into a low-carbon intensity and green economy. The 2030 target for the hydrogen mission is to produce 5 MMT annually.
  •  A priority investment fund of Rs 350 billion has been allocated for the net-zero goal of the energy transition.
  • Viability Gap Funding to be used to support the development of battery energy storage systems with a 4,000 MWh capacity.
  •  A detailed framework for pumped storage projects will also be formulated.
  • Building an interstate transmission system for the grid integration of 13 GW of renewable energy from Ladakh will cost Rs 207 billion.
  • The Environment Protection Act will notify the green credit programme of any actions taken by people or organisations to promote environmentally friendly behaviour.
  • The Govardhan scheme announced 500 new waste-to-wealth plans to encourage a circular economy.
  • Using the public-private partnership model, coastal shipping will be marketed as an economical and energy-efficient mode of transportation.
  • It was declared that as a key component of the green economy, it is important to replace old, polluting vehicles. Sufficient amount of money must be set aside to scrap old federal, state, and ambulance vehicles.
  • Custom duty exemptions for imports of equipment and capital goods needed to produce lithium-ion cells used in electric vehicle batteries.