The Rs 35,000 crore earmarked in the Budget towards energy transition and energy security would be largely used to fund retrofitting of refineries and other units to meet emission norms, the finance ministry clarified on January 4. Some portion of these funds will also be utilised to augment strategic petroleum reserves.
In her budget speech earlier this week, Finance Minister Nirmala Sitharaman said, this budget provides Rs 35,000 crore for priority capital investments towards energy transition and net zero objectives and energy security by the Ministry of Petroleum and Natural Gas.
The budget document did not clarify what these funds would be utilised for. The ambiguity led to speculations that these funds may be utilised to augment strategic gas reserves and gas-based infrastructure, in line with India's gas-based economy ambitions.
TV Somanathan, finance secretary in a post-budget media briefing in Mumbai clarified the Rs 35,000 crore funds will be utilised to meet the retro-fitting needs for refineries and other units as they upgrade to meet emission and other pollution norms. The finance secretary added some of the funds will also be used to augment the country's strategic petroleum reserves.
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