Union Budget 2023: FM allocates Rs 35,000 crore towards energy transition

Finance Minister Nirmala Sitharaman presented the Union Budget 2023-24 on February 1.

Finance Minister Nirmala Sitharaman announced an allocation of Rs 35,000 crore for capital investments towards energy transition and net zero objectives by the Ministry of Petroleum & Natural Gas.

“This Budget provides Rs 35,000 crore for priority capital investments towards energy transition and net zero objectives, and energy security by Ministry of Petroleum & Natural Gas,” said FM while presenting Union Budget 2023-24 on February 1.

This comes as India focuses on a cleaner economy and aims to achieve a net-zero emissions goal by 2070.

Sitharaman also highlighted that “green growth” will be one of the seven priority sectors (“Saptarishi”) of the Union Budget 2023.

“India is moving forward firmly for the ‘Panchamrit’ and net-zero carbon emission by 2070 to usher in green industrial and economic transition. This Budget builds on our focus on green growth,” she said.

In her Budget speech, Sitharaman said the government is implementing many programmes for green fuel, green energy, green farming, green mobility, green buildings, and green equipment, and policies for efficient use of energy across various economic sectors.

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Jimit Devani, Partner, Deloitte India said, “A rocket ship of Rs 35,000 crore capital outlay provided by FM as India heads for its net zero “Panchamrit” goal by 2070 and 5 MMT annual production (green hydrogen) by 2030. A promising step in the right direction.”

“FM provides various fiscal benefits to pump energy transition, battery energy storage via viability gap funding, renewable energy evacuation, green credit program, biogas plant (Gobardhan scheme), biomass and natural farming,” he added.