During the 2024 interim budget presentation, the Union Finance Minister (FM) announced important initiatives promoting sustainable energy and electric mobility. A noteworthy revelation includes the provision of solarising 10 million households through the implementation of rooftop solar plants. The announcement comes in the wake of the recent Pradhan Mantri Suryodaya Yojana initiative, which seeks to decrease the electricity costs for impoverished and middle-class households, concurrently fostering India’s self-sufficiency in the energy sector. The FM mentioned that the initiative would result in households saving between Rs 15,000 to Rs 18,000 per year through the opportunity to sell excess power to distribution companies.
The FM also approved viability gap funding (VGF) for offshore wind projects with a combined capacity of 1,000 MW in an effort to maximise the potential of offshore wind energy. It is anticipated that this financial assistance will accelerate the construction of offshore wind projects, supporting India’s objectives for renewable energy.
Furthermore, the government is poised to strengthen and broaden the electric vehicle ecosystem by offering assistance for manufacturing and charging infrastructure. The emphasis will be on encouraging increased adoption of electric buses in public transportation networks by implementing a reliable payment security mechanism. This initiative is anticipated to improve public transportation systems, fostering a more sustainable and environmentally friendly urban mobility environment.
Moreover, a significant step toward sustainable fuel sources involves making it obligatory to blend compressed biogas with compressed natural gas and piped natural gas for transportation. This measure is in line with the government’s dedication to encouraging cleaner and more environmentally friendly alternatives in the transportation industry. The government is gearing up to introduce a Biomanufacturing and Bio Foundry programme, an initiative focused on offering eco-friendly alternatives for the production of biodegradable materials.
The budget also witnessed revisions in the costs for several programmes, including an increase in the allocation for on-grid solar power from Rs 49.7 billion to Rs 85 billion, the National Green Hydrogen Mission from Rs 2.97 billion to Rs 6 billion, and the green energy corridor from Rs 5 billion to Rs 6 billion. However, the adjustments resulted in a decrease in the budget estimate allocation for on-grid wind power from Rs 12.14 billion to Rs 8 billion and the programme for Faster Adoption and Manufacturing of Hybrid and Electric Vehicle in India from Rs 51.72 billion to Rs 26.71 billion.
