India aims to progress towards a Viksit Bharat (Developed India) by 2047, with green energy serving as a key driving force in this transformative journey. The FY25 budget reflects a proactive and visionary strategy, highlighting the government's dedication to enhancing India's infrastructure and combating global challenges.
The announcement to increase capital expenditure on infrastructure to 11 lakh crores (3.4 percent of GDP) is a positive move, expected to significantly boost the economy. The government's initiatives to empower youth by promoting entrepreneurship and technology innovation, including a 1 lakh crore research corpus, herald a promising era for emerging sectors. The focus on inclusive growth, particularly in the eastern region, and the support for research and innovation, will help realise the aspirations of the nation's youth.
As economic activities ramp up and geopolitical dynamics shift, the demand for energy remains robust. In this evolving scenario, increase in natural gas in India’s energy mix to 15 percent is inevitable in achieving a greener future.
Notably, the proposed shift for hard-to-abate industries from energy efficiency targets to emission targets is essential for reducing emissions across sectors that have historically struggled with transitioning. This shift is particularly relevant for oil and gas companies, which may face increasing regulatory pressure to lower their carbon footprints, potentially leading to innovations in cleaner technologies and practices. The formulation of appropriate regulations to transition these industries from the current Performance, Achieve, and Trade (PAT) mode to the Indian Carbon Market mode marks an important regulatory advancement.
As the government charts a course for unprecedented sustainability and efficiency in the energy sector, there is a notable emphasis on integrating nuclear advancements alongside renewable energy sources. Such a blended approach allows for a diversified energy portfolio, enhancing stability and reliability in energy supply.
Additionally, to boost strategic sectors and reduce import dependence, customs duty exemption on 25 critical minerals covering essential materials such as nickel and blister copper will help in reducing production cost of steel and copper, ultimately reducing cost of development in the strategic and core sectors important for the country.
Broadly, the government’s plan to introduce three schemes for Employment Linked Incentive signifies a proactive approach toward job creation, aligning opportunities with the evolving energy sector. This initiative will enable individuals to engage in a growing field that prioritises sustainability and innovation, reinforcing the commitment to revitalising the workforce.
In conclusion, the Union Budget 2024 lays a solid foundation for India's energy revolution. By its focus on research, development and technology, investing in infrastructure, and fostering a collaborative approach between industry and government, India is poised to transition towards a sustainable energy future. Collectively, these measures signify a vital step in addressing climate goals while ensuring economic resilience and growth. As we move forward, the commitment to energy transition and sustainability must remain steadfast to achieve a greener, more sustainable India.
Pankaj Kalra is the CEO of Essar Oil and Gas Exploration and Production Limited (EOGEPL).
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