India’s FY24 Union Budget presents huge opportunities for investors in green energy: PM Modi

Prime Minister Narendra Modi on February 23 said that this year's Union Budget presents huge investment opportunities towards its push for green energy including the National Green Hydrogen Mission, ethanol blending, battery storage and vehicle scrapping, which the investors should not miss.

“This Budget will make India a lead player in the renewable energy market globally. Investors should not skip opportunities like setting up ethanol plants across the country. There are a lot of opportunities in electrolyser manufacturing,” Modi said while addressing a post-budget webinar on green energy.

The Prime Minister said that in order to move towards a green growth and energy transition, India has focussed on three priorities – increase in production of renewable energy, reduce the usage of fossil fuels and move towards a gas-based economy.

India has been the fastest in green energy addition. The 10 percent ethanol blending target with petrol also has been achieved before time. India also achieved 40 percent of its power capacity through non-fossil fuels ahead of time.

“India has focussed on green growth through ethanol blending, rooftop solar scheme, battery storage, etc. For industry there is green credit while for farmers there is PM Pranam Yojana in this budget,” he said.

The green credit programme was announced in the budget to encourage corporates and local bodies to adhere to sustainable practices under the Environment (Protection) Act. The programme incentivises companies to mobilise additional resources for sustainable environmental action and reduce carbon footprints.

The PM Programme for Restoration, Awareness, Nourishment and Amelioration of Mother Earth was announced for farmers to move to natural farming and reduce the use of chemical fertilisers. The scheme incentivises states to encourage alternative fertilisers.

The Union Budget also announced the Gobardhan scheme for setting up 500 new waste-to-wealth plants will be set up to manage cattle and organic waste.

Modi said that the vehicle scrapping policy is an integral part of green growth. Under the vehicle scrapping policy about three lakh vehicles will be scrapped including police cars, ambulances and public buses, which are 15 years old.

“Rs 3,000 crore has been allocated for vehicle scrapping policy. Vehicle swapping will be a big market for investors and will help promote a circular economy,” Modi said.

As far as the battery storage capacity is concerned, he said that in the next 6-7 years, India has to increase it to 100GWh.

The PM said that we need to work towards cargo movement via coastal and inland waterways. Currently, only 5 percent of cargo movement takes place via coastal waterways and 2 percent via inland waterways.

In all these areas investors have huge opportunities to invest as India takes a lead in green energy technology, he added.