Finance minister Nirmala Sitharaman has allocated Rs 48,396 crore towards the power sector, including new and renewable energy, in her Budget for the financial year 2025-26. The outlay is an increase of 30 percent over the previous year’s allocation of Rs 37,143 crore (revised estimate) and 22 percent over the budget estimate of Rs 39,602 crore.
Of the Rs 48,396 crore, the power ministry received Rs 21,847 crore and the ministry of new and renewable energy (MNRE) Rs 26,549 crore, the Budget document tabled in the Parliament on February 1 shows.
The biggest share of Rs 16,021 crore from the power ministry funds went to the revamped distribution sector scheme, a key component of which is prepaid smart metering, system metering, and distribution infrastructure upgrades. The scheme received Rs 12,665 crore (RE) in the FY25 Budget.
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The transmission sector got Rs 850 crore, a decline from the RE of Rs 1,815 crore in FY25. At the same time, Rs 600 crore has been kept aside for green energy corridors (GECs) meant for evacuation of renewable energy and integrating it with the national grid.
GECs had the same amount (Rs 600 crore) in the FY25 revised estimate as well.
The government's flagship rooftop solar scheme — the PM Surya Ghar: Muft Bijli Yojana — got Rs 20,000 crore, up by 80 percent from Rs 11,100 crore (revised estimate).
Moneycontrol recently wrote that the Surya Ghar scheme would get bigger budgetary support to ensure its faster implementation to meet the renewable energy targets.
The National Green Hydrogen Mission (NGHM) received Rs 600 crore, compared to Rs 300 crore (RE) in FY25.
The government approved NGHM on January 4 2023, hoping to become a leading producer and exporter of green hydrogen by hitting an annual production of 5 million metric tons (MMT) by 2030.
The PM-KUSUM scheme (Pradhan Mantri Kisan Urja Suraksha evam Utthan Mahabhiyan) got Rs 2,600 crore, against Rs 2,525 crore (RE) in FY 25.
PM-KUSUM is one of the largest initiatives in the world to provide clean energy to more than 35 lakhs farmers by solarising their agriculture pumps.
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