29, February, 2024
HomeBusinessBudget 2024: Green Energy Enthusiasts Urge More Incentives and Tax Relaxations

Budget 2024: Green Energy Enthusiasts Urge More Incentives and Tax Relaxations

Published on

In the lead-up to the interim Union Budget presentation on February 1, the renewable and new energy sectors are advocating for increased and improved access to financing for green energy initiatives.

Read Also | Anticipation Builds as Budget 2024 Nears: Industry Leaders Urge Comprehensive Policies for EVs

With a target of achieving 50 percent cumulative installed power generation capacity from non-fossil fuel sources by 2030, stakeholders emphasize the need for financial support to add approximately 50 GW of renewable energy capacity over the next five years.

Key Focus Areas for Green Energy Initiatives:

  1. Rooftop Solar: Anticipation surrounds the inclusion of budget allocation for the Pradhan Mantri Suryoday Yojna, a rooftop solar scheme for households. Enhanced subsidies are expected, with an allocation speculated to be at least Rs 20,000 crore.
  2. Green Hydrogen: Industry experts emphasize the importance of implementing a green hydrogen-blending mandate for identified industries and reducing the GST rate for electrolyser manufacturing from 18 percent to spur growth in the sector. Initiatives to facilitate seamless export, inclusion in priority sector lending, and encouraging credit access are crucial.
  3. Offshore Wind: Expectations rise for a proposed viability gap funding for offshore wind projects, aligning with previous reports of the government planning nearly Rs 6,800 crore VGF for offshore wind projects with a total capacity of 1 GW.
  4. Energy Storage Systems: While the approval for viability gap funding of Rs 3,760 crore for battery energy storage systems has been granted, stakeholders seek a revision in taxes and duties and additional incentives for large grid-scale energy storage systems. Exploration into using green ammonia or green hydrogen as energy storage is also encouraged.
  5. Coal Gasification: Anticipation surrounds the inclusion of the government’s plan to offer Rs 8,500 crore viability gap funding for coal gasification in the Interim Budget. The ambitious coal and lignite gasification program aims for 100 MT of coal gasification by 2030, with investments exceeding Rs 4 lakh crore.
  6. Green Finance: The draft National Electricity Policy estimates a funding requirement of Rs 20.67 lakh crore for solar and wind projects during 2022-2032. The industry seeks an overall increase in capital expenditure for new and renewable energy, particularly in setting transmission lines for evacuating upcoming renewable energy capacities.

Read Also |  Prime Minister Modi Unveils Transformative Technology Initiatives on Supreme Court’s Diamond Jubilee

As the government aims for a greener future, these expectations highlight the crucial role financial incentives and policy support play in propelling India’s transition towards sustainable and renewable energy sources.

Latest articles

WhatsApp Unveils Handy Pop-Out Chat Feature for Windows Beta

WhatsApp is set to revolutionize user experience with the introduction of a new pop-out...

Not-So-Neighborly Hollywood Stars: Tales of Trespassing and Turmoil

Living next to a Hollywood celebrity might sound like a dream, but for some...

Global Recognition: ‘Drishyam’ Franchise Set for Hollywood Remake After Korean Success

The Drishyam franchise, celebrated for its triumph in India and China, is poised for...

More like this

TMC Leader Sheikh Shahjahan Arrested in Sandeshkhali Violence Case

In the early hours of Thursday, Sheikh Shahjahan, a prominent figure in the Trinamool...

Bumble Initiates Restructuring, Announces Workforce Reduction

Bumble, the popular dating app, has disclosed plans to terminate approximately 30% of its...

Dailyhunt Nearing Acquisition of Indian Social Network Koo

Dailyhunt is reportedly in the final stages of discussions to acquire Koo, a Bengaluru-based...
Enable Notifications OK