During the 2024 interim budget presentation, the finance minister announced important initiatives promoting sustainable energy and electric mobility. A noteworthy announcement 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 minister mentioned that the initiative would result in 10 million households getting 300 units of free electricity per month, resulting in savings of between Rs 15,000 to Rs 18,000 per year through the opportunity to sell excess power to distribution companies. The minster 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. Several key announcements were also made in the bioenergy space. Renewable Watch provides edited excerpts of budget reactions by industry executives working in the renewable energy sector….
Pratik Agarwal, Managing Director, Sterlite Power
“The budget’s emphasis on research and development is path-breaking. The substantial Rs 1 trillion corpus, paired with a 50-year interest-free loan, presents a significant incentive for the private sector to scale up research and development investments in sunrise domains. Implementation here will be the key to realising the full potential of this opportunity.
Suhas Baxi, Co-Founder and CEO, BioFuelCircle
“The Honourable Finance Minister’s mention in the Interim Budget 2024 of providing financial assistance for the procurement of biomass aggregation equipment addresses one of the biggest bottlenecks in the green energy supply chain. This will now help create strong rural enterprises focused on the bioenergy sector.
We are also excited to hear about the initiatives that the government has planned for the growth of biofuel adoption through the proposed phased mandatory blending of compressed biogas (CBG).
BiofuelCircle’s commitment towards the creation of a dependable supply chain for bioenergy and the facilitation of dynamic market-based participation to drive the scalability of the bioenergy sector is unwavering, and we look forward to contributing significantly to India’s journey towards sustainability.”
Raman Bhatia, Founder and MD, Servotech Power Systems
“For the EV industry, Aatmanirbharta and Viksit Bharat took centre stage in the budget, epitomising a visionary approach to India’s self-reliance and comprehensive development. The vision for an economically independent and developed India permeated every facet of the budget, showcasing a steadfast commitment to innovation, resilience, and transformative growth, positioning India as a global leader. As a leading EV charger manufacturer, we applaud the strategic focus on the EV sector. The emphasis on creating business opportunities and generating employment marks a significant stride in accelerating sectoral growth. Government support for manufacturing and developing EV charging infrastructure provides a crucial impetus for establishing a robust and widespread charging network. The focus on deploying E-Buses in commercial spaces, facilitated by a secure payment mechanism, reflects a progressive approach that contributes to the overall advancement of the electric mobility ecosystem. While we anticipated announcements on FAME-3 and the PLI scheme, we remain hopeful that the full-fledged budget will delve into these schemes in detail. We eagerly look forward to actively participating, leveraging our expertise to bolster the growth of the EV ecosystem and contribute to building a sustainable and efficient electric mobility infrastructure. Our optimism extends to the belief that the comprehensive budget will usher in opportunities fostering innovation and sustainability in the transportation sector, steering India closer to its vision of becoming an EV-powered nation.
For the solar industry, Aatmanirbharta and Viksit Bharat were foundational to the budget, embodying a visionary approach and setting the stage for a robust and dynamic economic landscape, aligning with the government’s mission to build a prosperous and self-reliant India on the global stage. As a prominent solar manufacturer, we appreciate the Rooftop Solarisation and Muft Bijli initiatives and are hopeful that this forward-thinking scheme is a groundbreaking effort to democratise access to solar power, making clean energy an integral part of everyday life. Our ethos centres around making solar energy not only environmentally friendly but also economically viable, and we anticipate that this initiative will catalyse the transition towards renewable energy and provide a major breakthrough in the energy sector. While we were anticipating updates on GST for solar products, we look forward to the detailed budget for further insights. The collective effort towards energy independence and a more sustainable future gives the much-needed impetus and instills a newfound motivation towards making India a green nation. We are optimistic that the full-fledged budget will open new doors and provide a plethora of opportunities that will not only impact communities nationwide but also contribute to a cleaner, greener, and more sustainable energy landscape.”
Dushyant Chachra, CFO, SAEL
“In the recently announced budget, the finance minister stated that financial assistance would be provided to support the procurement of biomass aggregation, crucial for bio-energy production. This move is highly encouraging for farmers to engage in the bioenergy supply chain, facilitating a sustainable and profitable model for agricultural waste management and creating a win-win situation for the biomass industry and farmers.
The extension of the time period for investments by SWFs in renewable energy, from March 31, 2024, to March 31, 2025, is expected to attract more global investment in the renewable space. This initiative could lead to numerous job opportunities, rapid sector expansion, and the growth of the sector and SAEL Group. Global SWFs, including Norfund (Norway) and DFC (USA), already having significant investments in SAEL renewable assets, will likely further boost the confidence of SWFs.
Through rooftop solarisation, 10 million households will have the opportunity to obtain up to 300 units of free electricity every month. New schemes and policies from the government in the near future are anticipated in this context. This announcement is highly encouraging and is expected to expand the penetration of solar rooftop markets, resulting in an efficient power supply for retail consumers in India.”
Gyanesh Chaudhary, Chairman and Managing Director, Vikram Solar
“With its clear vision, sound structure, and commitment to fiscal prudence, this interim budget continues on a path towards Atma Nirbhar and Viksit Bharat (a self-reliant and prosperous India). The significant 11.11 per cent increase in capital expenditure will act as a catalyst for economic growth and job creation, ensuring inclusive growth for the nation.
The prime minister’s ambitious vision of rooftop solarisation will provide 300 units of free electricity to 1o million households every month, resulting in savings of Rs 15,000–20,000 per year. This significant announcement promises a bright future not only for the renewable energy industry but also for numerous enthusiasts and entrepreneurs urging new employment opportunities.
“First Develop India” through increased FDIs and the government’s efforts to negotiate bilateral investment treaties augur well for Indian entrepreneurs. Also, efforts to promote green growth through bio-manufacturing are a step in the right direction to achieve our net zero targets.
By prioritising the development of the eastern region and unlocking its potential as an engine of national growth, the government demonstrates its commitment to balanced and inclusive development across the nation.
Guided by the principles of “reform,” “perform,” and “transform,” the government is navigating these turbulent geo-political times with confidence. Under its leadership, the Indian economy is poised to shine even brighter on the global stage.”
Manish Dabkara, Chairman and MD, EKI Energy Services and President, Carbon Markets Association of India
As a leading player in the global environmental sector, we at EKI Energy Services commend the Indian government’s forward-looking and comprehensive approach to climate action and sustainable development, as outlined in the Union Budget for the financial year 2024-25.
The focus on leveraging green energy, including the initiative for rooftop solarisation to provide 300 units of free electricity monthly to 1o million households, not only promises significant savings for the Indian populace but also aligns with the global mandate towards achieving net zero emissions. Integrating it with the carbon credits mechanism, which is under development in the country, will prove to be feasible for its own funding.
The allocation of a Rs 1 trillion corpus for interest-free financing for research and development in the sunrise domains—the emerging industries of innovation likely to grow rapidly—will prove a milestone in the climate action of India. The advancement of electric vehicle (EVs) policies related to infrastructure, especially the development of green energy infrastructure, underscores a pivotal shift towards sustainable economic growth.
The emphasis on coal gasification and liquefaction, alongside the innovative measures for biomass and compressed biogas, marks a critical step in reducing dependency on imports and fostering energy security. It will reduce upstream supply chain uncertainties for entrepreneurs working on biofuel manufacturing, making this country energy and carbon secure.
Viability gap funding for 1 GW offshore wind energy exemplifies India’s commitment to renewable growth and marrying economic development with environmental care. The government’s investment in the blue economy and bio-manufacturing demonstrates a holistic approach to leveraging India’s natural resources responsibly.”
Tanmoy Duari, CEO, AXITEC Energy India
“We at Axitec India are delighted to hear about the rooftop solar program announced by the FM in the interim budget today. This is a visionary initiative that will not only provide clean energy but will also give income opportunities to 10 million households across India. Through rooftop solarisation, these households will be able to obtain up to 300 units of free electricity every month while also contributing to the national grid and earning from it.
This programme will also boost the renewable energy sector and help India achieve its climate goals. The Finance Minister said the fiscal deficit in 2024–25 is estimated to be 5.1% of GDP, which is lower than the previous year. This shows the government’s commitment to fiscal prudence and economic recovery.“
Apurve Goel, Director, Kundan Green Energy
“We see the Union Budget 2024 highlights as progressive from a renewable energy and climate change mitigation perspective.
My submission for the government to consider is the viability gap funding and overall availability of green finance for renewable energy, especially hydro power. Building a hydel plant typically costs two to three times more capital than solar or wind. Similarly, the gestation period is longer. This means that hydel plants are capital-intensive and require a more robust and longer-haul commitment. While cost inflation is a natural outcome, developers also need to mitigate it by factoring in anticipated increases in project costs and minimising overruns through optimal use of resources coupled with speed and tight timelines. A friendlier and more accessible fiscal ecosystem, including easier insurance, will help energise this critical renewable energy generation category.”
S.K Gupta, CFO, AmpIn Energy Transition
“Being an interim budget only, it is still heartwarming to see that “green energy promotion” continues to be a key message of the finance minister in her limited agenda budget speech for 2024. Her reiteration that India is committed to being net zero by 2070 also shows the government’s continuing commitment to all-round promotion and development of renewable energy in India in the coming years.
The extension of “viability gap funding” for harnessing offshore untapped wind energy potential and taking it to 1 GW+ in the initial phase, along with schemes such as the Pradhan Mantri Suryodaya Yojana, set the direction for the government’s final budget proposals for renewable industry post-elections in April 2024.
The commitment to expand and strengthen the EV ecosystem will further boost the growth of renewable green energy demand and help the government meet its target of 500 GW of green energy by 2030.
With this positive framework in the interim budget, the industry feels confident that the final budget proposals of the government will favourably reconsider and implement its following key long-pending demands:
- Further rationalisation and realignment of the renewable policy framework between the state and central government are needed to tap the large C&I segment.
- Rationalise and reduce import duty and GST on critical inputs (cells, modules, battery storage solutions, green hydrogen equipment, etc.) to further give impetus to green energy growth in the country.
- Prompting industry to exploit PLI scheme benefits to promote in-house manufacturing of wafers, ingots, and silicon to optimise the solar value chain.
- Larger allocation of priority capital investment in the sector and helping source project finance through international renewable development organisations at very competitive cost.
- Extending income tax benefits to newly incorporated power generation companies for one more year beyond March 31, 2024.”
Sameer Gupta, Chairman and Managing Director of Jakson Group
“Aligned with the government’s strategy to ‘Reform, Perform, Transform’, to stimulate strategic growth. In parallel, Jakson aligns seamlessly with the government’s visionary initiatives, including a substantial Rs 11.11 trillion infrastructure investment and the introduction of ‘Pradhan Mantri Suryodaya Yojana.’ This programme aims to provide 10 million households with 300 units of free electricity through rooftop solarization, symbolising our shared commitment to economic growth and the net zero journey. These dynamic measures not only enhance energy security and promote clean energy accessibility but also drive a tech revolution, supported by a Rs 1 trillion corpus for research and development. Jakson is committed to this journey towards a sustainable and inclusive future, championing synergies between innovation and economic empowerment.”
Ankit Hakhu, Director, CRISIL Ratings
“The plan for supporting solar rooftops in 10 million households augurs well for developers and module manufacturers as it will bump up rooftop demand. It will also be attractive for households given the potential to save on electricity costs of Rs 15,000–18,000 per year per household. That said, the quantum and mechanism of disbursements and timelines around the support will determine the pace of progress of the scheme and will bear watching.”
Kartikey Hariyani, Founder and CEO, ChargeZone
“We wholeheartedly support the government’s vision outlined in the Interim Budget 2024, reflecting a strong commitment to the electric vehicle (EV) ecosystem. ChargeZone is perfectly aligned with this vision, emphasising the need to fortify both EV manufacturing and charging infrastructure. The encouragement of e-buses in public transport networks, along with the implementation of a robust payment security mechanism, not only accelerates the adoption of sustainable transportation but also propels the growth of the EV charging sector.
We are glad to be able to play a key role in steering this positive transformation by actively contributing to the manufacturing, installation, and maintenance of EV charging stations across the country. As part of the National Highway Electrification Scheme, we have also been electrifying state and national highways by installing fast chargers for seamless and accessible charging for EV owners, demonstrating our vision of accelerating India’s transition to green mobility.”
Devansh Jain, Executive Director, INOXGFL Group
“We recognise the government’s visionary move in introducing viability gap funding for offshore wind projects, a fairly complex endeavour in the Indian context. This initiative holds potential to open up large opportunities for the wind sector as India marches aggressively towards its 2030 renewable energy and 2070 net-zero targets. Compared to onshore, offshore projects are currently significantly costlier from a cost of energy perspective, and the VGF announced in this year’s budget will aid in lowering power generation costs to ensure power offtake from these projects, as well as instil confidence among wind players towards investing in offshore technologies. We expect the benefits to materialise more prominently in the medium to long term.”
Anil Jain, MD, Refex Group
“We are very happy with the Interim Budget 2024-2025, as there is a lot of focus given to green and sustainable energy to promote Blue Economy 2.0. The government’s initiative to offer 10 million households solar rooftops is a step in the right direction. Their move to empower and encourage youth and women will act as a catalyst for the country’s GDP. To boost research and innovation in emerging sectors, various schemes will add value and enable accelerated growth for the overall economy. This interim budget will open many avenues for all sectors while also ensuring every citizen’s development.”
Anil Joshi, Managing Partner, Unicorn India Ventures
“The interim budget was in line with expectations. However, startups and sunrise sectors continue to find a special mention even in the interim budget. The extension of tax exemption to startups is a good gesture, and the provision of Rs 1 trillion towards the sunrise segment at a nominal or zero interest rate will certainly help small businesses. The focus on boosting EV charging stations will drive sales of both vehicles and charging infrastructure. No change to direct and indirect tax was also expected; however, we may see new rates in the full budget to be proposed in July 2024.”
Ankit Kedia, Founder and Leader Investor, Capital A
“The FM’s efforts in formulating an interim budget that prioritises sustainability and clean mobility are indeed noteworthy. At Capital A, our commitment to climate-conscious startups resonates strongly with the government’s focus on sectors like green energy. The provision of viability gap funding for shore-wind energy is strategically poised to attract startups and investors to this sector. Moreover, the phased mandatory blending of compressed biogas in transportation fuels and domestic piped natural gas signifies a significant stride forward. The introduction of bio-manufacturing in the electric vehicle sector promises to markedly reduce manufacturing emissions, thereby enhancing the eco-friendliness of EVs. Capital A eagerly endorses startups utilising bio-plastics and bio-agricultural inputs, thereby fostering a green-oriented manufacturing sector.”
Neeraj Kuldeep, Senior Programme Lead, Council on Energy, Environment, and Water (CEEW)
“Today’s budget announcement on rooftop solar further emphasises the active role Indian citizens will play in the country’s energy transition and supporting India’s climate commitments. Analysis by the Council on Energy, Environment, and Water (CEEW) suggests that 20–25 GW of rooftop solar capacity would be supported through the solarisation of 10 million households. Further, given that residential consumers receive subsidised electricity from discoms, solarisation of the demand from these households will save about Rs 2 trillion for discoms over the next 25 years (the solar plant’s life). All states can leverage this opportunity as rooftop solar potential exists everywhere, unlike utility-scale solar, which is primarily restricted to seven renewable energy-rich states. CEEW analysis has already established the 637 GW of technical potential in India for rooftop solar.”
Saurabh Kumar, Vice President, India, Global Energy Alliance for People and Planet (GEAPP)
“The interim Union Budget 2024 not only signifies a landmark in India’s journey to a net-zero economy by 2070 but reflects the government’s vision of Viksit Bharat, which anchors on pillars of energy security and accessible, affordable clean energy. The rooftop solar scheme marks a significant milestone for scaling up India’s clean energy ambitions. The push for electric vehicle (EV) ecosystem creation and the large-scale roll-out of e-buses through payment security mechanisms will decarbonise the mobility sector while propelling India as a potential EV manufacturing hub. The announcement of the Rs 1 trillion corpus is a remarkable step to attract private investment in innovation, research, and development in the clean energy sector.”
Kush, CEO, Essar Power
“The interim budget 2024-25 has laid a foundation to propel towards reliable, cleaner, greener, and sustainable energy. The government’s commitment to providing free rooftop solar electricity to 10 million households signifies a strategic move towards resource-efficient economic growth. This initiative not only ensures energy security but also stimulates entrepreneurship and employment in the evolving renewable energy landscape.”
Dr Satish Kumar, President and Executive Director, Alliance for an Energy Efficient Economy
“The government’s unwavering commitment to fostering sustainable growth and inclusive development signifies a momentous milestone. Their dedicated focus on prioritising policies to enhance the affordability, accessibility, and availability of clean energy perfectly aligns with India’s strategic goal to establish energy efficiency as a cornerstone for the nation’s future. Optimism abounds as forthcoming reforms centre on sustainable and resilient growth, particularly in the development of the electric vehicle (EV) ecosystem. The allocated funds for charging infrastructure and the introduction of new EV buses are positioned to play a pivotal role in realising India’s ambitious net-zero goals and effectively combating climate change. It is imperative that new construction seamlessly integrate low-carbon and energy-efficient building practices to pave the way for a decarbonised built environment. AEEE stands prepared to collaborate with the government and other stakeholders, ensuring the successful implementation of these visionary initiatives.”
Rajesh Kumar Mediratta, MD & CEO, Indian Gas Exchange
“The budget has laid a roadmap for ensuring a green gas-based economy in India. The policy mandating phased blending of CBG for CNG and PNG will help in greening the gas supply chain and balancing the demand-supply for clean fuels. Financial assistance for procuring biogas aggregation machinery would tremendously help in energising the biofuel segment. We feel this budget has created a conducive environment for the trading of clean and eco-friendly biofuels, in alignment with India’s net-zero goals.”
Rajiv Ranjan Mishra, Managing Director, Apraava Energy
“The Interim Budget 2024, presented by Finance Minister Nirmala Sitharaman, continues on India’s path of fiscal consolidation. It aims to lay the foundation for a Viksit Bharat by focusing on inclusive growth and sustainability. Underlining this priority, the government’s focus on encouraging skilling, health, energy security, and MSME growth, as well as the increased capital expenditure of 11.1 per cent, will position the nation as a manufacturing hub and an investor-friendly country. On sustainability, the government’s commitment to achieving its net zero target is commendable. To this effect, the viability gap funding for harnessing offshore wind energy potential for an initial capacity of 1 GW will help the sector step up its pursuit of developing wind assets that will contribute to the nation’s net-zero and energy security goals. The importance placed on EV infrastructure and green energy will also drive the nation towards a more sustainable future and green Amrit Kal.”
Vineet Mittal, Chairperson of Avaada Group
“In the Interim Budget 2024–25, the finance minister has outlined its development philosophy, which aptly involves both social and geographic inclusion. She has given a detailed account of the government’s performance in the last ten years through hard facts and figures. While it was an interim budget, the government has displayed consistency in its approach to India’s march in the ‘Amrit kaal.’
Increased emphasis on women’s empowerment and research and development will go a long way in developing India’s growth story. The government’s plan for fiscal consolidation and bringing down the fiscal deficit to 4.5 per cent by FY-26 shows its commitment to fiscal discipline in the future. The increase in allocation to the infrastructure sector from Rs 10 trillion last year to Rs 11.11 trillion is encouraging. The announcement of new railway corridors for energy, minerals, and cement, port connectivity corridors, and high traffic density corridors will boost the economy.
For the energy sector, some notable announcements that will accelerate the government’s decarbonisation agenda include rooftop solarization for 10 million households, which is commendable. Also, Viability Gap Funding (VGF) for 1 GW offshore wind projects; coal gasification and liquefaction by setting up 100 MT by 2030; mandatory blending of CBG in CNG for transport and PNG for domestic purposes; and financial assistance for the procurement of biomass aggregation machinery are a shot in the arm.
New manufacturing schemes for encouraging industries producing biofuels, biopolymers, bioplastics, biopharmaceuticals, etc. will ensure comprehensive growth within a circular economy. I think, overall, this is a very well-balanced budget that also provides glimpses of the government’s strategic roadmap for the Amrit Kaal.”
Uday Narang, Founder and Chairman, Omega Seiki Mobility
“We commend the government’s visionary Interim Budget 2024, a monumental step towards a sustainable and technologically advanced future. The strategic allocation for a robust electric vehicle ecosystem aligns seamlessly with our commitment to entrepreneurship, innovation, and growth in the EV industry. The emphasis on supporting manufacturing and creating employment opportunities, coupled with initiatives for women’s empowerment and the adoption of e-buses, reflects a comprehensive approach to inclusive progress. The dedicated support for manufacturing and charging infrastructure is a game-changer, promising exponential growth in our industry. This budget represents a significant step towards cleaner air, sustainable transportation, and a thriving domestic EV industry. We are euphoric about the prospects outlined in this budget, providing a robust framework for us to accelerate EV adoption and contribute to a cleaner, interconnected future for India.”
Bikesh Ogra, Managing Director and Chief Executive Officer, Jakson Green
“The recently announced budget’s substantial infrastructure investment marks a significant stride in accelerating the renewable ecosystem. We anticipate dedicated allocations for crucial elements such as port infrastructure, renewable energy integration, and specialised infrastructure for green hydrogen. Notably, PM Gati Shakti’s railway corridors emerge as a game-changer for green hydrogen and its derivatives, fostering dedicated transport links between production hubs, ports, and markets. This strategic move is poised to reduce costs, enhance accessibility, and expedite India’s transition towards clean energy.
Furthermore, the government’s decision to reduce borrowing from markets is a pivotal development, unlocking opportunities for increased private investment, particularly in sectors like renewables. This shift acts as a catalyst for India’s clean energy transition, propelling us closer to a sustainable future. Additionally, the viability gap support for offshore wind and bio-based solutions holds immense promise, presenting opportunities to lower the levelised cost of green hydrogen and its derivatives. In a seemingly neutral yet strategically significant move, the budget’s stable tax and duty regime ensures a steady flow of foreign investments, particularly in critical sectors like renewable energy. This commitment to continuity prioritises investor confidence and predictability, serving as essential pillars for fostering long-term commitments and accelerating growth in key sustainability sectors.”
Sneha P Pai- Senior Director, Direct Tax Nexdigm
“The rooftop solar electricity programme is an excellent step towards green energy. Reduces the burden on electricity distribution companies, on coal and other minerals, and makes uninterrupted electricity available to individuals. A win-win for all.
FDI: bilateral investment treaties with the aim of first-developed India (FDI). More FDI means more employment and more incomes—we need funds for developing India.
The fiscal deficit in 2024-25 is estimated to be 5.1 per cent of GDP. The government remains committed to a lower fiscal deficit.
The budget lays down comprehensive economic policies touching infrastructure, tourism, green energy, FDI, medical and education. This will lead to more employment among the youth, increasing overall per capita income.
Big infrastructure pushes include railways, airports, metros in urban areas, rooftop solar electricity, and investments in roads and highways.
Green energy and net zero remain in focus. The golden era for tech-savvy youth. The all-inclusive budget covers Garib, women, youth, and income earners.”
Ashvin Patil, Founder and Director of Biofuels Junction
A significant challenge addressed in the budget is the large-scale collection of stubble, particularly the capital-intensive process involving balers. Annually, India witnesses the generation of approximately 500 million tonnes of agricultural residue, offering a substantial business opportunity estimated at around Rs 500 billion. Unfortunately, nearly 200 million tonnes of this resource remain unused, often leading to environmentally detrimental burning practices. This underscores the untapped potential for converting agricultural residues into biofuels. The recent budget announcement by the finance minister, emphasising measures such as financial assistance for biomass aggregation machinery, outlines a crucial initiative to address this issue and unlock the economic and environmental benefits of converting agricultural residues into biofuels. The focus on transforming agricultural waste into biofuels not only contributes to sustainable waste management but also aligns with the larger vision of promoting green growth and reducing carbon emissions in the country. It will also help farmers generate income from agricultural waste, boost and support the rural economy and communities, and promote rural entrepreneurship.
Furthermore, the announcement of the phased mandatory blending of compressed biogas (CBG) with compressed natural gas (CNG) for transport and piped natural gas (PNG) for domestic purposes will help integrate sustainable and renewable energy sources into the mainstream fuel supply, promoting environmental responsibility and reducing dependence on traditional fossil fuels. The mandated blending of CBG in CNG and PNG represents a proactive step towards fostering a cleaner and greener energy ecosystem, aligning with the broader goals of sustainable development and reducing carbon emissions in the transportation and domestic sectors.”
Mayuresh Raut, Co-founder and Managing Partner, Seafund
“The solar rooftop schemes will be a big boost, not only to meet our goals for clean energy but also to set up India to start addressing the electric vehicle (EV) charging infrastructure that is currently holding back wider adoption of EVs. It will also create enormous jobs for the installation, manufacturing, and maintenance of solar infrastructure, and a secondary effect will be the opportunities available for startups to build on this.
Bio-manufacturing, biofoundry, biodegradable polymers, biopolymers, and bio-agricultural inputs are all critical areas that India needs to address, given the fact that our cities continue to figure among the most polluted regions in the world. This will enable critical technologies to effectively use waste from agri-produce and also encourage innovations in our CSIR labs in these areas towards commercialisation.
The extension of tax benefits for sovereign wealth funds expiring on March 31, 2024, to March 31, 2025, is a good signal from the government to indicate that there will be a continuation of beneficial policies and friendly institutional investor policies.”
Deepak Sharma, Zone President, Greater India, MD & CEO, Schneider Electric India
“The interim budget provides a robust blueprint for Viksit Bharat. It comprehensively addresses all sectors of the economy, with a specific emphasis on fostering innovation, research, and entrepreneurship. Setting up a corpus of Rs 1 trillion and providing a 50-year low-interest loan for tech-savvy youth will scale up research and innovation. The budget also demonstrates a noteworthy commitment to sustainability, particularly in the energy sector. Promotion of solar rooftop installations, provision of 300 units of free power every month to 1o million households, mandatory blending of compressed biogas (CBG) with CNG and PNG, and incentives for offshore wind energy will ensure energy accessibility, affordability, and availability. There is also a noteworthy focus on strengthening the EV ecosystem by supporting the charger manufacturing infrastructure. Increasing the number of EV buses on the roads is a welcome, environmentally friendly step.”
Gagan Sidhu, Director, CEEW Centre for Energy Finance (CEEW-CEF)
“The announcement of viability gap funding for offshore wind as a measure to meet India’s net-zero commitment is welcome, as the sector needs some support to kick off. As per CEEW’s analysis, while 65 per cent of the $10 trillion of investments required for India to achieve net zero by 2070 can be mobilised from conventional sources, the remaining 35 per cent will need interventions. Further, wind as a generation source is also critical for our near-term energy ambitions. In fact, per the CEA’s own assessment, wind capacity would have to grow 1.9 x from its current 44.7 GW to 100 GW by 2030 to meet the expected increase in power demand in the country by then.”
Meenu Singhal, Regional Managing Director, Socomec Innovative Power Solutions
“We welcome the focus on the poor, women, youth and farmers. Uplifting these segments will act as a catalyst to India’s aspirations to become a 5 trillion-dollar economy. All the announcements made today will lead the country to become ‘Vikshit’ Bharat. Alternate sources of energy will continue to drive transformation in consumer tech, especially in the power-saving sector. The commitment to research and innovation by a Rs 1 trillion corpus with a fifty-year interest-free loan signifies a phenomenal growth opportunity for our tech-savvy youth, aligning seamlessly with our mission for sustainable technology solutions.”
Sumant Sinha, Founder, Chairman and CEO, ReNew
“This is a very welcome and forward-looking vote on the account presented by the FM. The strategy laid out reflects the Prime Minister’s vision of a modern, inclusive, resilient, innovative and green India. The continued thrust on capital expenditure and reduced market borrowings will enable acceleration in private investments and employment creation. The budget balances growth with fiscal prudence.
The continued priority to achieve rapid growth in the green energy sector is clear. Announcements on viability gap funding for offshore wind energy and allocations for solar rooftop projects will support the development of the whole industry. The announcement of the corpus of Rs 1 trillion for R&D in the sunrise sector sets a positive tone for the future, encouraging us to accelerate our investments and innovations in renewable energy technologies.”
Anvesha Thakker, Partner Business Consulting and National Industry Lead, Clean Energy, KPMG
“The thrust towards a bio-based economy has been stepped up with the announcement of a new scheme on biofoundries, biomanufacturing, financial support for biomass aggregation machinery, and mandates for CBG blending. This should result in debottlenecking some of the constraints, such as biomass availability, as well as providing new use cases for this sector to grow for example, bio based substitutes in industries such as polymers, pharmaceuticals, etc. This not only provides income and growth opportunities for farmers but also offers avenues for decarbonisation in industries, including promoting regenerative principles in manufacturing.
The budget has a strong focus on decentralised opportunities such as solar rooftops and EV charging,which is aimed at creating a step change in the sector with a strong underlying theme of including households, SMEs, and youth in the energy transition opportunities. A wider adoption of solar rooftops is likely to be propelled by the scheme for 300 units of free electricity every month for 10 million households through rooftop installations, which provide savings of up to fifteen to eighteen thousand rupees annually. This, along with the support for manufacturing and charging infrastructure for EVs, is likely to create entrepreneurship opportunities for a large number of vendors for supply and installation, as well as employment opportunities for youth with technical skills in manufacturing, installation, and maintenance.”
Anil G. Verma, Executive Director and CEO, Godrej & Boyce
“The Interim Budget 2024 is extremely well thought out and clearly a step towards the vision of a developed India by 2047. The FM has stayed away from populist measures in an election year and needs to be congratulated for the same.
By limiting the deficit to 5.1 per cent of the GDP, which should be achievable given the rather conservative tax receipts, fiscal prudence has been given due importance. Lower borrowings, and thus lower borrowing costs, will help prioritise domestic spending and guard against external shocks.
The increased capital expenditure of Rs 11.11 trillion, constituting 3.4 per cent of the GDP, bodes well for the infrastructure-led GDP growth and will also crowd in private sector investments as we are now witnessing improvements in consumer sentiments (and demand).
The focus on sustainability through rooftop solarisation, adoption of E-buses, capacity enhancements in renewable energy, and coal gasification is a must, given the impact of greenhouse gases.“
Srinivasan Viswanathan, Chief Executive Officer, Vibrant Energy
“We applaud the government’s budget announcement for its strong commitment to sustainable and green initiatives. The focus on providing free electricity to 10 million households through rooftop solarization is a commendable step towards ensuring energy security and reducing environmental impact. This initiative, aligned with Vibrant Energy’s commitment to advancing sustainable practices, serves as a model for responsible development. It delivers a dual benefit by alleviating financial burdens on households and fostering cleaner energy sources.
The budget’s strategic allocation of the viability gap funding for 1 GW offshore wind energy is critical support required to bolster the renewable energy footprint in the country. Other initiatives to support the electric vehicle ecosystem and the promotion of bio-manufacturing are welcome initiatives for achieving net-zero targets. These steps not only contribute to a greener and more resource-efficient economy, but they also generate considerable economic possibilities, including entrepreneurship in EV infrastructure and employment for youth with technology skills. Vibrant Energy looks forward to actively participating in these initiatives, contributing to India’s journey towards a cleaner and more resilient future.”
Aditi Bhosale Walunj, Founder and CVO, Repos Energy
“The Indian economy is expected to have steady growth, as predicted by multiple agencies. But we have to keep emphasising structural reforms, and one of the key factors is energy security. So it is great to see that the government of India is taking active steps in this direction with the National Green Hydrogen Mission. This is a progressive step towards sustained future growth, as it would ensure an uninterrupted supply of clean energy to all the stakeholders. The technological applications may also benefit us in the efficient and optimal use of currently available fuels. 24/7 easy access to energy shall drive domestic production. This emphasis on sustainable energy policies coupled with fundamental infrastructural developments will for sure drive the economic growth of the nation.”
