Rajasthan Unveils INR 27,854 Crore Green Budget for 2025-26, Promoting RE
Deputy CM Diya Kumari presented Rajasthan’s first-ever INR 27,854 crore Green Budget, focusing on renewable energy, circular economy, and sustainability. Key initiatives include solar power adoption, free electricity expansion, and INR 250 crore Clean and Green Technology Development Centre.
February 20, 2025. By EI News Network
The budget focuses on promoting green energy, sustainable agriculture, a circular economy, climate change adaptation, and forest conservation. It aligns with India’s 2030 sustainable development goals and outlines key initiatives to drive environmental protection and green growth. The budget places a strong emphasis on renewable energy.
All government offices will transition to solar power, and Public Health Engineering Department (PHED) pumping stations will adopt solar energy through the Hybrid Annuity Model (HAM). The state also plans to provide one lakh families with free induction cooktops to encourage clean cooking. The 'Solar Didi' programme will train 25,000 women from self-help groups (SHGs) to promote solar energy adoption.
Furthering its commitment to sustainable technology, the government will establish an INR 250 crore Clean and Green Technology Development Centre and implement a Green Growth Credit Policy to incentivise eco-friendly innovations. Additionally, the state will introduce the Rajasthan Green Credit Mechanism, which will develop tradable carbon credits to provide additional incentives for investors and industries engaged in green growth projects. To support government-led sustainability initiatives, Green Funds and Instruments will also be leveraged.
A Sustainable Development Goals Coordination and Acceleration Centre (SDGCAC) will also be set up, alongside an investment of INR 40 crore in sustainability education. To advance the circular economy, the Rajasthan Circular Economy Incentive Scheme-2025 will promote recycling and reuse, while Waste to Wealth Parks will be established to convert waste into resources.
The government also plans to invest INR 900 crore in developing 16 cities as Clean and Green Eco-Cities, emphasising sustainable urban infrastructure. In a move to expand access to free electricity, the government will leverage the Prime Minister's 'PM Surya Ghar Muft Bijli Yojana' through the Chief Minister's Free Electricity Scheme. Beneficiary families will now receive 150 units of free electricity per month, an increase from the previous 100 units. For low-income families without adequate space for solar installations, community solar plants will be established to ensure equitable access to renewable energy.
The budget also addresses power sector reforms. With the central government approving Rajasthan’s Power Sector Reform proposals, the state will raise an additional 0.5 percent of its Gross State Domestic Product (GSDP), approximately INR 9,949 crore, during 2025-26. Further, amendments to the FRBM Act, 2005, will facilitate this, helping Rajasthan achieve energy self-reliance.
Additionally, the government will expand its artisan upliftment scheme by providing 2,000 electric wheels and clay kneading machines to pottery artisans, promoting sustainable livelihoods.
Rajasthan’s first-ever Green Budget for 2025-26 reflects a comprehensive approach to environmental sustainability and energy transition. With significant investments and policy measures across sectors, the state aims to drive green growth while fostering economic empowerment and ecological balance.
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