Budget 2024-25: Nirmala Sitharaman Presents Green Growth and Renewable Energy Initiatives

Union Minister for Finance and Corporate Affairs, Nirmala Sitharaman, presented her seventh consecutive Union Budget for the fiscal year 2024-25 in Parliament.

She has announced to bring out a policy document on appropriate energy transition pathways that balance the imperatives of employment, growth, and environmental sustainability. The Minister said this is in continuation of the Government strategy to sustain high and more resource-efficient economic growth, along with energy security in terms of availability, accessibility, and affordability.

In line with the announcement in the interim Budget, PM Surya Ghar Muft Bijli Yojana has been launched to install rooftop solar plants to enable 1 crore households to obtain free electricity up to 300 units every month. "The scheme has generated a remarkable response with more than 1.28 crore registrations and 14 lakh applications, and the Government will further encourage it," said FM Sitharaman.

According to the government, the benefits expected from solarisation are savings of up to INR 15,000-18,000 crore annually for households from free solar electricity and selling the surplus to the distribution companies.

To support domestic solar manufacturing, Sitharaman proposed expanding the list of exempted capital goods used in the production of solar cells and panels. "I propose to expand the list of exempted capital goods for use in the manufacture of solar cells and panels in the country," she said. However, with sufficient domestic capacity now available, the exemption of customs duties for solar glass and tinned copper interconnects will not be extended.

The Finance Minister also said that a policy for promoting pumped storage projects will be brought out for electricity storage and facilitating smooth integration of the growing share of renewable energy with its variable & intermittent nature in the overall energy mix.

Talking about thermal energy the Finance Minister said that the development of indigenous technology for Advanced Ultra Super Critical (AUSC) thermal power plants with much higher efficiency has been completed. A joint venture between NTPC and BHEL will set up a full scale 800 MW commercial plant using AUSC technology and the Government will provide the required fiscal support, she said.

The Finance Minister also added that a roadmap for moving the ‘hard to abate’ industries from ‘energy efficiency’ targets to ‘emission targets’ will be formulated. She announced that appropriate regulations for the transition of these industries from the current ‘Perform, Achieve and Trade’ mode to ‘Indian Carbon Market’ mode will be put in place.

Furthermore, the Finance Minister said that an investment-grade energy audit of traditional micro and small industries in 60 clusters, including brass and ceramic, will be facilitated. Financial support will be provided for shifting them to cleaner forms of energy and implementation of energy efficiency measures. The Minister said the scheme will be replicated in another 100 clusters in the next phase.

Here's what the industry is saying on the Budget 2024-25:

Gautam Mohanka, CEO of Gautam Solar says, "The PM Surya Ghar Muft Bijli Yojana has been launched to install rooftop solar plants, providing free electricity up to 300 units per month to 1 crore households. Achieving 1.28 crore registrations and 14 lakh applications through the scheme is a remarkable feat indeed. We at Gautam Solar are aligned with the Prime Minister’s vision of 'Vocal for local,' which opens new growth avenues for Indigenous players and are committed to supporting the country's renewable energy goals by employing our capacities for optimal returns."

Capt. Ishver Dholakiya, MD and Founder, Goldi Solar adds, "The Union Budget 2024 is a forward-looking and progressive plan. The government's focus on climate risk mitigation, women's workforce development, and energy security positions India as a leader in sustainable development. Exempting capital goods for solar manufacturing will reduce costs and boost domestic production. The PM Suryaghar Muft Bijli Yojana, offering up to 300 units of free electricity monthly to 1 crore households, will enhance rooftop solar adoption. Goldi Solar applauds these efforts towards a clean energy ecosystem and the 'Make in India' vision."

Kishan Karunakaran, CEO of Buyofuel remarks, “This Union Budget once again underscores the commitment to achieving Vikisit Bharat 2047, with energy transition being a top priority. The interim budget's financial assistance has significantly benefited the biofuel industry by simplifying the complex biofuel supply chain and generating increased interest in the sector. If appropriate regulations for transitioning the hard-to-abate sectors are outlined, we can anticipate substantial governmental support to solidify our energy transition efforts."

Manish Dabkara, Chairman and MD of EKI Energy Services comments, "Finance Minister Nirmala Sitharaman's budget speech outlines a thorough strategy to drive India towards sustainable development and energy security. It is a great example of the right things at the right time. The roadmap for hard-to-abate industries transitioning from energy efficiency to emissions efficiency, with utilisation of carbon market instruments, aligns with our mission to promote carbon/environmental markets derivatives in reducing carbon footprints. We are excited to support Indian industries in this critical shift, leading from the front to nurture a greener and more sustainable industrial landscape."

Saurabh Kumar, Vice President- India,  Global Energy Alliance for People and Planet (GEAPP) states, "The policy-driven emphasis on the energy sector in the Union Budget 2024-25 exemplifies the Government's commitment to integrating the principles of energy security and energy transition as a cornerstone of Viksit Bharat. We anticipate that the development of energy transition pathways will bolster state-level initiatives aimed at accelerating renewable energy adoption. Furthermore, the proposed financial support for MSMEs to transition to cleaner energy forms will be pivotal in fostering positive change at the grassroots level."

Shyam Manohar Nayak, Chairman, Sunlit Power says, "As someone deeply involved in the energy sector, I'm genuinely excited about the budget's focus on power and renewables. The plan for a new 2400 MW power plant is a game-changer for our energy landscape. But what really warms my heart is the overwhelming response to the PM Surya Ghar Muft Bijli Yojana - it's not just a scheme, it's a solar revolution in the making! The upcoming pumped storage policy is like music to our ears at Arenq. It's not just about generating power, but storing it smartly too."

Sachidanand Upadhyay, MD, Lord's Mark Industries Limited states, "The Finance Minister's announcement of a forthcoming policy document on energy transition pathways is a significant step towards a greener future. The introduction of the PM Surya Ghar Muft Bijli Yojana is a transformative initiative while investing in rooftop solar systems representing a significant financial commitment by the Government. With 1.28 crore registrations and 14 lakh applications already recorded, this achievement reflects a robust public response and sets a promising precedent for sustainable energy adoption in India."

Gopal Kabra, Founder and MD, GK Energy comments, "The budget can be termed as progressive aimed at bolstering the solar sector's growth and sustainability and we welcome the budget proposals. The government's commitment to increasing investment in renewable energy was evident through significant allocations for solar infrastructure development and energy storage solutions. Notably, the custom duty exemption on capital goods for solar cells and panels stands out as a pivotal move. This exemption is expected to lower production costs, making solar energy more affordable and accessible."

Deepak Pahwa, Director, Bry-Air adds, “The focus of the budget on sustainability and green energy showcases the country’s commitment to become a net zero economy by 2070. Announcing the taxonomy of climate finance, the government aims to boost the allocation of funds and subsidies promoting innovation in the direction of carbon capture and storage technologies."  

Udit Garg, CEO & Director, Kundan Green Energy emphasises, "In my view, the union budget bodes well for the green energy and renewables sector in India. The initial broad strokes of policy will foster demand while encouraging the industry to increase capacities. This is complemented by steps to augment energy security. The Government's rooftop solar policy is of latitudinal importance and will not only be a boon for power to every home, it will have an exponential impact on the country's renewable agenda helping us leapfrog to goals. Similarly, pumped storage will be a ground resilience for hydropower."

Sumant Sinha, Founder, Chairman and CEO, ReNew adds, “The Union Budget 2024 has undeniably taken forward the Prime Minister’s commitment towards India's clean energy transition. The Finance Minister’s announcement that the Government will release a policy document on India’s energy transition pathway and policy on pumped storage will provide much needed long term clarity for investments across the value chain. The continuation of the PM Surya Ghar Muft Bijli scheme, on the back of an overwhelming response for its subscription, underscores the growing appetite for clean energy solutions among citizens, aligning perfectly with our national sustainability goals." 

Vipin Tiwari, Corporate Strategy Manager, AXITEC Energy India comments, "Axitec Energy welcomes the Indian government's recent move to provide import duty exemptions for up to 6 GW of photovoltaic (PV) projects. Basic Custom Duty will be nill on solar manufacturing equipment which was 7 percent earlier and will help reduce the price. Additionally, the duty on solar glass and interconnectors will now be 10 percent and 5 percent respectively."

AK Tyagi, Founder, Chairman and MD of Nuberg Engineering, says, The Budget 2024 includes bold and progressive measures that deserve praise. In line with the dream of a Viksit Bharat, bringing in a policy paper on energy transition routes is a big move to balance growth environmental protection, and jobs. This complete approach will be key as we deal with the tricky scene of changing our energy use. Auctioning offshore mineral blocks and creating a policy for electricity storage shows a practical approach to boost our energy infrastructure. These steps, along with efforts to add more renewable energy, will spark new ideas and make the sector more productive."

Shashank Sharma, Founder, Chairman and CEO, Sunsure Energy, adds, “This budget sends a strong signal that India's renewable energy transition is accelerating. While the increase in basic customs duty on glass imports will result in higher input costs for domestic power producers in the short term, this is a necessary long-term measure to strengthen the domestic supply chain, especially given our ambitious goal of achieving 50 GW of renewable energy annually. The Finance Minister also emphasized enhancing the availability of capital for climate adaptation and mitigation. This initiative will help industries secure climate finance on favourable terms, creating a supportive ecosystem for the green energy transition."

Gyanesh Chaudhary, CMD, Vikram Solar, states, "The Union Budget 2024 has positioned India as a frontrunner in the global solar energy landscape. By allocating a substantial Rs. 7,327 crore for solar projects and introducing initiatives like the PM Surya Ghar Muft Bijli Yojana, which aims to provide free electricity to one crore households, the government has demonstrated a strong commitment to clean energy. This budget is a catalyst for the growth of the Indian solar industry, empowering millions of households with access to affordable and clean electricity. Moreover, by supporting ancillary sectors like pump storage and creating a conducive environment for innovation through tax incentives for solar cell and panel manufacturing, the budget has laid a robust foundation for India's energy transition."

Sameer Gupta, Chairman and MD, Jakson Group, adds, "The Union Budget 2024 is a major milestone for the nation, fostering economic growth, infrastructure development, and energy independence. The PM Suryaghar Muft Bijli Yojana, aimed at installing rooftop solar panels in 1 crore households to provide 300 units of free electricity, is transformative in making sustainable energy accessible. This will boost solar adoption in the residential sector and drive economic growth. Special attention has been given to MSMEs and manufacturing. The support includes a Credit Guarantee Scheme, term loans for machinery, and technology financing packages. These measures will help MSMEs scale up and enhance competitiveness."

Amit Sharma, Managing Director and CEO, Tata Consulting Engineers, comments, "The Indian government's transformative and futuristic initiatives are set to accelerate the growth of the nation's infrastructure landscape while enabling technological advancement and ensuring a viable and sustainable energy transition. The 2024 Union Budget's focus on green growth with a INR 35,000 crore investment, the adoption of nuclear, clean energy with Bharat Small Reactor (BSR) and Bharat Small Modular Reactor (BSMR), and private participation in the nuclear energy arena, incentivising the adoption of higher efficiency Advanced Ultra Super Critical (AUSC) thermal plants, and focus on Pumped Storage Projects (PSP) for renewable energy integration, alongside a national critical metals and minerals policy, and the promotion of domestic solar cell and module manufacturing, create a comprehensive roadmap for the energy transition in hard-to-abate sectors."

Tarun Sawhney, Vice Chairman and MD, TEIL, says, "In the energy sector, the Government's emphasis on renewable energy sources such as solar, thermal, and nuclear, along with the upcoming policy on pumped storage projects for electricity storage, will facilitate the smooth integration of renewable energy into the overall energy mix. This approach will address the variable and intermittent nature of renewable energy, ensuring a stable and reliable energy supply. Further the increased focus on climate finance and tools such as carbon credits would enhance the speed of green transition through improved viability of the Bioenergy sector."

Preeti Bajaj, MD and CEO, Luminous Power Technologies says, “The budget announcement has provided the much-needed boost to the energy sector underscoring the commitment to energy security and sustainability. While the interim budget announced a strategy to sustain high and more resource-efficient economic growth, and security in terms of availability, accessibility, and affordability, the renewable energy players will be awaiting the policy document on appropriate energy transition pathways. The PM Surya Ghar Muft Bijli Yojana is a revolutionary initiative that has garnered an overwhelming response, with over 1.28 crore registrations and 14 lakh applications. This sets a strong precedent for sustainable energy adoption in India. The Government’s proposal to expand the list of exempted capital goods used in the manufacturing of solar panels is a significant step towards promoting solar energy and driving the energy transition."

Srivatsan Iyer, Global CEO, Hero Future Energies states, “ I would like to congratulate the Government for presenting a visionary Budget that focuses on sustainable and inclusive economic growth. I particularly welcome several announcements that reflect the Government’s continued support for the renewable energy sector. The impetus on PM Surya Ghar Muft Bijli Yojana will help fast track nationwide adoption of roof top solar, helping expand our overall RE capacity. The proposed investment in Pumped Storage programmes is a much-needed step that will ensure smoother integration of growing RE, leading to more reliable supply of green power and grid stability. The focus on transitioning hard to abate industries to greener alternatives will catalyze the C&I sector’s journey towards net zero. Introduction of a taxonomy for climate finance will help attract much needed capital for boosting climate resilience. Finally, the expanded duty exemptions will also help propel the RE sector ahead."

Sudheer Perla, MD – Tabreed Asia & Country Manager – India, Tabreed emphasises, "Tabreed is encouraged by the Finance Minister's announcement of a detailed roadmap to pursue nine national priorities, including a strong focus on urban development, infrastructure, and energy security. The emphasis on energy transition pathways, with a focus on employment and sustainability, aligns perfectly with Tabreed's mission to provide energy-efficient cooling solutions for India's rapidly growing cities. As the nation's energy demand is increasingly being led by our cooling needs, we can help reduce power demand by upto 40 percent alleviating grid stress through our efficient cost-effective solution. In addition, our transformative systems thinking approach can integrate with renewable energy and reusing resources such as treated wastewater bringing in circularity principles that our country is long familiar with."

Baroruchi Mishra, Group CEO, NET Enterprise says, Overall a balanced budget aimed at job creation which in turn will lead to increased consumption and propel growth. It also has a good focus on energy transition. Instead of promising free electricity @300 units for I Cr households under PM Surya Ghar Bijli Yojna, the government should have announced more enabling subsidises for solar panel installations and battery procurement. And let the population get addicted to using Solar as much as they can."

SK Gupta, CFO, AMPIN Energy Transition adds, "While appreciating the policy framework, the industry expects that some of the following critical demands for promoting renewable energy in the country should be met through suitable amendments in the budgetary provisions: Classify the renewable industry as a part of ‘Priority Sector lending’ to facilitate project finance at very competitive rates for RE projects. Rationalize indirect tax-GST rates on turbines and modules to 5 percent each from the existing 12 percent. Exempt ALMM for Corporate and Industrial projects. Provide a greater push on developing and promoting in-house R&D facilities for the development of the latest technologies for cell, and module manufacturing, and their backward integration. Additionally, promote in-house manufacturing of capital goods for the industry to avoid reliance on imports from third countries."

Vinay Thadani, Director and CEO, Grew Energy says, "We are pleased to see the continuation of reforms. As the government emphasizes the 9 priority sectors for the next 5 years, the solar sector has been at the forefront of the government's efforts to combat climate change and reduce reliance on traditional energy sources. Furthermore, the introduction of the PM Surya Ghar Yojana is encouraging, as it aims to add 1 crore more households by providing 300 units of free electricity every month. One positive aspect of this budget is the initiatives to provide financial support for MSMEs to shift to cleaner forms of energy, which will accelerate the growth of solar modules."

Prashant Mathur, CEO Saatvik Energy comments, "The FY25 budget is pragmatic and progressive with adequate focus on energy transition, which is crucial to build a sustainable future. The response to the PM Surya Ghar Muft Bijli Yojana is heartening and we are confident that solar rooftops will be adopted on a mass scale in the coming years. The budget has further strengthened the domestic solar manufacturing industry by expanding the list of exempted capital goods for use in production of solar cells and panels. The budget’s proposal to not extend the exemption of customs duties for solar glass and tinned copper interconnect will also give a boost to domestic solar equipment ecosystem. Importantly, the government’s proposal to do away with customs duty on 25 critical minerals will promote manufacturing in emerging segments like battery storage.”

Mahesh Girdhar, Managing Director and CEO, EverEnviro Resource Management, says, "Compressed Biogas (CBG) plants produce Fermented Organic Manure (FOM), a vital component for soil health that can be used as an eco-friendly fertilizer to promote regenerative agriculture. This renewed focus of the Government of India on developing the agro-industry presents a remarkable opportunity for all players, including us, to strengthen our contribution to India’s economic development. At EverEnviro, we welcome the special focus on sustainable and resilient agriculture and energy security."

Hanish Gupta, Founder and CEO of Sunkind Energy, states, “We welcome Finance Minister Smt. Nirmala Sitharaman's budget that resonates with the spirit of the vision of Viksit Bharat 2047. The budget marks a seminal shift for India's renewable energy sector. By equipping one crore households with rooftop solar panels through the PM Suryaghar Muft Bijli Yojana, the government is taking a big step toward reducing our reliance on fossil fuels and reshaping our energy future. The expanded exemption for capital goods in solar panel production is an astute move, designed to elevate domestic manufacturing capabilities and make solar energy more affordable. We also appreciate the government's new initiative to promote job creation in the manufacturing sector and motivate first-time employees to take part and contribute to the growing GDP of the country. These bold initiatives underscore India's unwavering dedication to its ambitious target of 500 GW of renewable energy by 2030, setting the stage for a brighter, cleaner tomorrow.”

Amit Jain, Global Chief Executive Officer - Sterling and Wilson Renewable Energy Group adds, “As a leader in the renewable energy sector, we feel that the recent budget announcement is an acknowledgement of the industry’s huge potential in terms of meeting India’s global sustainability commitments, ensuring the nation’s long term energy security, and providing access to affordable and clean power source for the people. We commend the government’s move to support energy transition by expanding the list of exempted capital goods for use in the manufacture of solar cells and panels in the country.  The PM Surya Ghar Muft Bijli Yojana which involves the installation of rooftop solar plants to enable one crore households obtain free electricity is a step in the right direction and shall promote a more sustainable future. The announcement to fully exempt 25 critical minerals and reduce BCD on two of them will assist the renewable energy sector, since it shall provide a major fillip to the processing and refining of such minerals and help secure their availability."

Shravan Gupta, Managing Director, Cosmic PV Power Private Limited, says, "We express our sincere gratitude to the government for making energy security a top priority in the Union Budget 2024. By emphasizing energy affordability, accessibility, and availability, the government is firmly establishing the groundwork for a Viksit Bharat by 2047. The Budget emphasizes the importance of sustainability and energy security. A step in the direction of a cleaner future is the Finance Minister's announcement of an upcoming policy document on energy transition paths. While the government has made a sizable financial commitment to rooftop solar system installation, the PM Surya Ghar Muft Bijli Yojana is a revolutionary project. With 14. lakh applications and 1.28 crore registrations thus far, this accomplishment shows a strong public response and creates a positive precedent for the adoption of renewable energy in India."

Venkat Garimella, Vice President - Strategy and Sustainability, Greater India, Schneider Electric states, “The Union Budget 2024-25 underscores the government’s commitment to sustainable nation building, with a pronounced focus on energy transition and youth development. The budget’s support for research and development of newer technologies to speed-up the energy transition, announcement on developing a roadmap for updating the emissions targets of hard-to-abate industries, and overall emphasis on cross-industry energy efficiency, are commendable measures that will build a green economy."

Amit Jain, CEO and Country Manager ENGIE, India, comments, "The government deserves commendation for prioritizing energy security as one of its Nine Priorities in the Union Budget 2024. By focusing on the availability, accessibility, and affordability of energy, the government is laying a strong foundation for a Viksit Bharat by 2047. The budget has further strengthened the energy transition journey by expanding the list of exempted capital goods for manufacturing domestic solar cells and panels. This will boost domestic manufacturing of solar cells and panels, further secure supply chain and help India achieve its target of 280 GW of solar power by 2030."

Prashant Singh, CEO and Co-Founder, Blue Planet Environmental Solutions, says "One of the key focus areas of the Union Budget 2024 is on promoting solid waste management projects across 100 large cities, which signifies a commitment to enhancing the quality of life for the public, while mitigating environmental degradation in challenging sectors. It will help build smart cities through not only improved infrastructure but also drive the right way of waste management. The announcement highlights a growing need for incorporating integrated waste management system in India’s burgeoning waste sector.”

Dr. Amit Paithankar, Chief Executive Officer, Waaree Energies Limited, comments, "The Union Budget 2024-25 is expected to mark as a transformative moment for India's renewable energy sector, reaffirming the government's commitment to sustainability, energy security, and economic growth. The PM Surya Ghar Muft Bijli Yojana is an initiative which is not only revolutionizing energy accessibility and affordability but also expected to generate substantial employment opportunities in solar panel manufacturing and maintenance while demonstrating the possible tangible benefits of renewable energy adoption. On the other hand, we eagerly wait to witness the announcement of the policy document on energy transition pathways which is expected to be a significant catalyst in the energy sector."

Manoj Sinha, CEO and Co-founder, Husk Power Systems, adds, "The Union Budget 2024-25 presented by Finance Minister Nirmala Sitharaman has taken a crucial step towards enhancing India's climate action by proposing the development of a taxonomy for climate finance. I was very glad to hear the terms Climate Adaptation funding as it is a non-trivial way to look at financing renewable energy programs. I am hoping to see more clarity on this action and subsequently, policies supporting climate adaptation projects as this will redefine the future of energy security for rural communities that bear the brunt of climate change."

Simarpreet Singh, Executive Director, Hartek Group comments, "The 2024 Budget reaffirms India's dedication to energy transition and economic growth by easing tax revisions for solar value chain components, providing fiscal support for pumped storage and rooftop solar projects, and incorporating nuclear energy to ensure future readiness. The 2024 Budget presents a strategic roadmap for heavy industries, emphasizing energy efficiency and emission-based targets. By supporting the adoption of alternative energy sources in traditional clusters, the budget aims to facilitate decarbonization goals and stimulate investment in tech startups within the sector."

Manoj Gopalan Nair, Sr. Director, Sales-India, Enphase Energy states, In her recent Union Budget speech, the Finance Minister emphasised the importance of renewable energy, particularly solar power. The government's commitment and focus to the SuryaGhar program, aimed at installing rooftop solar on 1 crore homes, is very promising. The allocation of 7327 crores for solar projects is a substantial investment. This funding will enhance awareness, build a community of installers, and engage local communities in the transition to solar energy. It will also support the development of model solar cities and leverage existing infrastructure to speed up the adoption of solar power."

Venkatesh R., Managing Director and Director, Energy Business, Wärtsilä India adds, “The Union Budget 2024 presents a promising roadmap towards the Government’s strategy to sustain high and more resource-efficient economic growth, along with energy security in terms of availability, accessibility and affordability. The emphasis on clean and sustainable energy sources is commendable. With this budget, the Government has chartered a path that heavily endorses renewable energy integrations. It will also bring out a policy document on appropriate energy transition pathways that balances the imperatives of employment, growth and environmental sustainability. These initiatives align with our vision of a sustainable energy future and provide ample opportunities for innovation and collaboration. We look forward to contributing our expertise in flexible power solutions to support India's journey towards a clean and resilient energy landscape.”

With comprehensive policies that promote renewable energy, enhance domestic manufacturing, and support cleaner technologies, the 2024-25 Union Budget aims to boost economic growth while ensuring environmental sustainability.