₹ 35,000 Crore Investment for Green Energy Transition: Finance Minister

 

New Delhi: Finance minister Nirmala Sitharaman on Wednesday provided an outlay of ₹ 35,000 crore to achieve energy transition and net zero objectives and listed green growth among seven priorities of the government.

"I come to the fifth priority -- green growth. Prime minister has given vision for LiFE, or lifestyle for environment. To spur a movement for environmentally conscious lifestyle, India is moving firmly for the panchamrit, the net zero carbon emission by 2070, usher in green industrial and economic transition. This budget builds on our focus on green growth," the finance minister said in her budget speech in Lok Sabha on Wednesday.

For energy transition, she told the House that this budget provides for ₹ 35,000 crore for priority capital investment towards energy transition and net zero objectives and an energy security by ministry of petroleum and natural gas.

Earlier in November, 2021, Prime Minister Narendra Modi had pledged to achieve net zero carbon emissions by 2070 under the Paris Agreement at the United Nations climate conference COP26 in Glasgow, United Kingdom.

PM Modi had presented India's national statement at the Glasgow summit, listing out five commitments of India to combat climate change. He had also raised the Nationally Determined Contribution (NDC) of achieving 450 giga watt non-fossil energy capacity to 500 giga watt by 2030.

She also spoke about the recently launched National Green Hydrogen Mission with an outlay of ₹ 19,700 crore, which will facilitate transition of economy to low carbon intensity, reduce dependence on fossil fuel imports and make the country adopt technology and market leadership in this sector.

"Our target is to reach an annual (green hydrogen) production of five MMT by 2030," she said.

She told that the House that government will provide viability gap funding for 4,000 MWh battery energy storage systems.

"To steer the economy on sustainable development path, battery energy storage systems with a capacity of 4,000 MWh will be supported with viability gap funding," she said.

She also informed the House that a detailed framework for pumped storage projects will be formulated.

About the renewable energy evacuation, she said that the inter state transmission system for evacuation and grid integration of 13 GW renewable energy from Ladakh will be constructed with an investment of ₹ 20,700 crore, including the central government support of ₹ 8,300 crore.

About green credit programme for encouraging behavioural change, she said a green credit programme will be notified under the Environmental Protection Act. This will intensify environmentally sustainable and responsive actions by companies, individuals and local bodies.

According to Jimit Devani, Partner, Deloitte India, the outlay of ₹ 35,000 crore is "a rocket ship" provided by the finance minister as the country heads for its net zero goal.

"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 programme, biogas plant (Gobardhan scheme), biomass and natural farming," Mr Devani said.

In January, 2022, the Union Cabinet had approved the National Green Hydrogen Mission with an initial outlay of ₹ 19,744 crore, including an outlay of ₹ 17,490 crore for the SIGHT programme, ₹ 1,466 crore for pilot projects, ₹ 400 crore for R&D, and ₹ 388 crore towards other mission components.

The Ministry of New & Renewable Energy has been entrusted with the task of formulating the scheme guidelines for implementation of the respective components.

The mission is aimed at development of green hydrogen production capacity of at least 5 MMT (Million Metric Tonne) per annum with an associated renewable energy capacity addition of about 125 GW in the country by 2030 and to bring investment of over ₹ 8 lakh crore in total investments.

It will also help creation of over six lakh jobs. The mission is also aimed at cumulative reduction in fossil fuel imports worth over ₹ 1 lakh crore. It will help in abatement of nearly 50 MMT of annual greenhouse gas emissions.

Original News: Budget 2023 | Press Trust of India

 

(Except for the headline, this story has not been edited by Scrabbl staff and is published from a syndicated feed.)