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Union Budget 2024: Wishlist of India’s Renewable Energy Industry

Finance Minister Nirmala Sitharaman is all set to present the Interim Budget 2024-25 on February 1. While the entire country eagerly waits for Budget 2024, here’s a sneak peek into the budget expectations of some of the key players in the industry.

January 24, 2024. By Anurima Mondal

‘ALMM should be implemented immediately and the project implementation time should also be shortened’

Ashwani Sehgal, President, India Solar Manufacturers Association (ISMA) & Managing Director of Alpex Solar Ltd.
The forthcoming budget represents a pivotal opportunity for the Government of India to solidify its commitment to sustainable energy and the growth of indigenous solar manufacturing. ISMA believes that the government should avoid policy oscillations and provide a stable environment for the sector's sustained development. Furthermore, we advocate for long-term planning to ensure a robust foundation for the solar manufacturing industry, which plays a pivotal role in India's energy transition. Emphasizing Aatmanirbharta (self-reliance), we encourage the government to prioritize backward integration, fostering a resilient ecosystem that not only meets domestic demands but also positions India as a global leader in solar technology. ISMA believes that a strategic and unwavering approach in the upcoming budget will catalyze the growth of the solar manufacturing sector, contributing significantly to the nation's energy goals and economic self-sufficiency. And last but not least, ALMM should be implemented immediately. The project implementation time should also be shortened to a maximum of 15 months. These measures will go a long way toward achieving the USD 5 trillion economy targets.

‘We expect substantial investments in R&D, subsidies, and workforce development to drive down costs and boost competitiveness’

Gyanesh Chaudhary – Chairman & Managing Director, Vikram Solar Limited

Striding ahead towards a sustainable future, India is right on track to reach its commitment of 50 percent renewable energy in its total installed capacity by 2030. Standing as a prominent player in the global solar revolution, Indian solar energy claims an impressive 54.76 percent share of the country's total renewable installed capacity, reaching a substantial 73.31 GW (as on Dec 2023). This shift reflects a substantial move towards fostering a more sustainable and eco-friendly energy landscape in India. The upcoming Budget 2024 will serve as pivotal bridge to realize this ambitious mission. 

To fuel this mission, we expect substantial investments in R&D, subsidies, and workforce development to drive down costs and boost competitiveness. Lower interest rates, dedicated green bonds, and innovative financing models ease financial burdens on manufacturers and developers. Simplified land acquisition, expedited clearances, and attractive tariffs create a thriving investor climate. Mandatory rooftop solar installations, consumer subsidies, and export incentives for domestic equipment unlock domestic demand and align with India’s Aatmanirbhar Bharat goals. Modernizing grid infrastructure and supporting DISCOMs ensure efficient solar integration to improve the distribution network and provide financial or technical assistance to the existing grid. Prioritizing these measures will unlock India's solar potential, achieve clean energy goals, strengthen energy security, and propel India to the sunlit the stage as a global solar leader.
‘We anticipate significant policy interventions along with stability in terms of existing policies’

Dilip Panjwani, Chief Financial Officer, Waaree Renewable Technologies Ltd.

The renewable energy sector is at an inflection point, poised for transformative growth. With the forthcoming Interim Budget in February, as well as the post-election Union Budget in July, we anticipate reinforcement of the government’s long-standing commitment towards sustainability and renewable energy generation, as well as significant policy interventions – along with stability in terms of existing policies - to further the nation’s critical green objectives. 

Based on estimates by the Power Ministry, India will witness an 83 percent increase in renewable energy project investments to around USD 16.5 billion (over INR 1.37 trillion). This is certainly a positive trend that bodes well for the national target to build 500 GW of renewable energy capacity by 2030, in line with our ambitious goal of achieving net-zero by 2070. A laser focus on renewable energy capacity generation and utilization, and prioritization of the same over conventional energy sources will substantially move the needle on India’s clean energy transition. Furthermore, in recognition of the key role played by robust energy storage solutions towards maintaining round-the-clock grid stability, policy incentives for this segment would also be very welcome.

A forward-thinking budget, backed by robust strategic initiatives, will give a strong impetus to innovation, bolster indigenous manufacturing, and place India in a pole position for global leadership of the renewable energy sector.

‘We are hoping for an increase in budget allocation, coupled with incentives for energy storage systems’

Ishan Chaturvedi, Co-founder, Vareyn Solar

In the midst of global upheavals, India must rely on its internal dynamics for medium-term growth, with the imminent interim budget laying the groundwork for the comprehensive budget later this year. Last year's budget focused on the significance of power distribution reform and a shift towards clean energy. As an industry, we are hoping for a substantial increase in budget allocation for the renewable energy sector, coupled with incentives for energy storage systems, heightened capital expenditure on green energy transmission, and support for emerging eco-friendly power sources.
This budget presents an opportunity for the government to prioritize the transition from carbon-centric to energy-efficient policies. Financial institutions hold a pivotal role in addressing climate change. Therefore, promoting investments in green bonds and renewable energy enterprises becomes imperative. Such incentives can propel India towards achieving its net-zero emission goal by 2070 and securing 50 percent of energy needs from renewable sources by 2030.
‘More proactive measures and fiscal incentives should be provided for making India a BESS manufacturing hub’

Vaibhav Roongta, Chief Business Officer - Rays Power Infra Pvt. Ltd.

Recognizing the forthcoming interim budget leading up to elections, will be for a short period, the role of strategic budgetary allocations will be crucial in paving the way for future provisions that can accelerate the growth of the renewable energy sector. In line with India's goal of achieving 500 GW of non-fossil energy by 2030 from the current capacity at 179.5 GW, there's an opportunity to incentivise the shift to sustainable energy.

Financial incentives such as tax credits, grants, and subsidies should be enhanced to make renewable energy solutions more economically viable for consumers and businesses alike. This can significantly reduce the initial investment barriers and accelerate the uptake of solar, wind, and other clean energy technologies.

 Addressing India's dependence on solar panel imports, which reached USD 1.13 billion in the first half of the current financial year, is a pressing concern. Therefore, the budget should incorporate measures to promote indigenous development, facilitate technology transfer, and incentivize localized manufacturing initiatives to conserve foreign exchange. More proactive measures and fiscal incentives should be provided and efficiently implemented for making India a BESS manufacturing and R&D hub.

Furthermore, we stress the importance of establishing a long term and stable regulatory framework that streamlines approval processes for large-scale projects, open access projects, implement efficient net metering policies, and ensure seamless integration of renewable sources into the existing grid infrastructure. Collaboration between public and private entities is paramount to building a sustainable energy ecosystem that benefits both the economy and the environment.
‘Government should think of establishing a central institution to support the research and innovation in energy storage and batteries’

Debi Prasad Dash, Secretary, US-India Energy Storage Taskforce (ESTF) and Executive Director, IESA

Our Hon’ble Prime Minister has announced Battery Manufacturing as one of the champion sectors, which encouraged many start-ups to gear up towards technology transition. Hence it is important to place separate focus on start-ups of energy storage and EV space. Dedicated funds are to be allocated for the sector including manufacturing-focused start-ups which need commitment and funding. To support the research and innovation in energy storage and batteries, the government should think of establishing a central institution called the National Institute for Energy Storage to advance India’s R&D roadmap in this sector. We also request the government to consider funding PPP projects and industry-academic institutes towards advanced technology developments.

‘We eagerly look forward to encouraging biofuel policies, supportive incentives, structured frameworks, and robust monitoring mechanisms’

Kishan Karunakaran, CEO, Buyofuel

As the union budget 2024-25 draws near, Buyofuel envisions a strong emphasis on decarbonization, with a particular focus on bioethanol, green hydrogen and bio-CNG. We expect policy initiatives that not only foster innovation but also prioritize transparency, a core value of Buyofuel. The government's renewed emphasis on sustainability resonates with our dedication to pioneering innovation and empowering our customers. Consequently, we eagerly look forward to encouraging biofuel policies, supportive incentives, structured frameworks, and robust monitoring mechanisms so that the wastes are better diverted into the biofuel value chain. A clearly defined long and short-term roadmap will be pivotal in ensuring India's steadfast progression towards achieving its self-sufficiency and net-zero ambitions.

‘A reduction in GST for turbines and solar modules has the potential to bolster the renewable energy sector’

Neerav Nanavaty, CEO, BluPine Energy

A reduction in GST for turbines and solar modules, from 12 percent to 5 percent, has the potential to bolster the renewable energy sector significantly. The current high tax adversely impacts tariff increases, hindering the growth of the industry. A lowered tax on these critical components could contribute to cost reduction, enhancing the economic viability of renewable energy projects. Additionally, the inclusion of electricity within the GST framework would be a significant move. This adjustment can streamline tax processes, alleviate complexities, and potentially impact the overall tax burden on electricity. Given the current scenario where financing for Renewable Energy (RE) operates at commercial rates, a decrease in interest rates or the provision of subsidized rates could stimulate further development in this sector.

‘PPPs are important to scale up indigenous solutions and meet the government's renewable energy goals’

Saurabh Kumar, Vice President-India, Global Energy Alliance for People and Planet (GEAPP)

With 2023 being the hottest year on record, tackling climate change has become imperative. The Production Linked Incentive (PLI) scheme, PM KUSUM Scheme, and solar park scheme have all been crucial government interventions in the industry. Now, it is imperative to go beyond budget allocations. For instance, last September, INR 3,760 crore was allocated as Viability Gap Funding (VGF) for the development and deployment of Battery Energy Storage Systems (BESS). We can take this further by focusing on market-facing allocations which can help in tapping a bigger market with a smaller pool of capital.

As India seeks to meet its ambitious RE targets, unlocking blended finance is crucial to ensure the growth of the RE sector. Public-Private Partnerships (PPPs) are important to scale up indigenous solutions and meet the government's renewable energy goals.

‘Governments should consider allocating funds for advanced waste management solutions, such as waste-to-energy plants’

Sachin Sharma, Founder and Director - Gem Enviro Management Limited

In the preceding year's budget, the government strategically positioned 'Green Growth' as a pivotal focus within the comprehensive 'Saptarishi' framework, allocating a substantial INR 35,000 crore for priority capital investment to achieve net zero emissions by 2070. Despite these commendable initiatives, challenges persist in effectively streamlining waste management processes, notably in handling plastic waste. In anticipation of the upcoming budget, industry stakeholders are optimistic about the prospect of a revision in the 18 percent GST on plastic input material, reverting to the previous rate of 5 percent.
Furthermore, with climate action occupying a central position in India's G20 agenda and the notable Green Credit Initiative taking center stage at COP28, the government's unwavering commitment to sustainable growth and effective waste management is unmistakable. However, there exists a compelling opportunity to amplify support for the recycling of plastic and e-waste management industries, a move that could substantially strengthen and propel these sectors toward heightened sustainability. As the nation looks forward to the forthcoming budget, stakeholders eagerly anticipate targeted measures that will not only reinforce the foundations of the waste management ecosystem but also align with the broader aspirations of a greener and more sustainable India. The nation's waste crisis necessitates immediate intervention. Governments should consider allocating funds for advanced waste management solutions, such as waste-to-energy plants, enhancing waste management infrastructure, optimizing supply chains, and providing incentives for businesses to adopt sustainable practices.

‘The states’ water-sharing agreements should include hydropower development agenda’

Udit Garg, Director, Kundan Green Energy

It is consistently demonstrated that hydropower plants across the spectrum: storage, run-of-river, and pumped storage provide immense benefits. However, this sector faces a lot of challenges - the financing sentiment in the hydro power sector has been quite damp in the past two years with no major financial closure being reported. Then, clearances from multiple departments during the project-planning stage consumes a lot of time. Uncertainty over the public acceptance of the project’s socio-environmental impacts; water sharing disputes; environmental impact assessment issues; geological surprises; underdeveloped project location with lack of basic infrastructure and communication networks; power evacuation issues; and lack of skilled contractors/workforce are some of the other challenges faced by hydropower sector.

Keeping all these issues in consideration, I would like to recommend a few measures before the budget announcement this year. The Government may like to consider the need for central and state government’s cooperation to actively work towards hydropower promotion -the states’ water-sharing agreements should include hydropower development agenda; government’s cooperation in developing basic infrastructure as well as power evacuation infrastructure. Moreover, establishment of a nodal agency/ institution dedicated to hydropower development could be announced during the budget; Central and state governments could help in creating public awareness programs to highlight the importance of hydropower projects so that it minimizes the social barriers. The pumped storage hydropower plants can be incentivized for maintaining grid stability through the ancillary services and by acting as a water battery to support grid integration of intermittent renewables such as solar and wind.
'Getting the balance right between growing the economy and being sustainable in this budget will shape how India grows in the future'

Chetan Walunj, Founder & CEO, Repos Energy

As we get ready for Budget 2024, all eyes are on two big areas: oil and gas and startups. While the Petroleum Ministry wants to keep the INR 30,000 crore fund from the last budget to help oil companies go green, the Finance Ministry is thinking of cutting it with a concern about how much oil costs globally. Meanwhile, startups have some wishes for the budget, like simpler tax rules to help them grow, funds for new ideas, more money for building innovations and growth, and support for tech development. Getting the balance right between growing the economy and being sustainable in this budget will shape how India grows in the future, making sure it's both strong and innovative.

‘Anticipating the central role of lithium-ion batteries, we urge GST reform for increased cost-competitiveness’

Nikhil Bhatia, Co-Founder & Chief Strategy Officer – HOP Electric Mobility

As anticipation builds for the upcoming finance budget, the electric vehicle (EV) industry is poised for transformative reforms. Advocating for a streamlined Production-Linked Incentive (PLI) scheme, stakeholders seek clarity in provisions to encourage investment and growth. The call extends to widening the scope of the FAME II scheme, fostering innovation in diverse EV segments.

A crucial focus lies on incentivizing in-bound technology transfer and manufacturing capabilities, positioning India as a global EV technology hub. Anticipating the central role of lithium-ion batteries, we urge GST reform for increased cost-competitiveness. Charging infrastructure development, especially through public-private partnerships, is deemed pivotal for accelerated EV adoption.

Moreover, the promotion of universal battery charging and swapping infrastructure aims to simplify the user experience and standardize EV charging. The forthcoming budget is anticipated to lay the foundation for a sustainable, technology-driven future in Indian mobility, aligning with global EV trends.

‘A tailored PLI scheme dedicated to lithium-ion battery recycling will be a game-changer’

Rajesh Gupta, Founder & Director, Recyclekaro

The upcoming budget holds a pivotal role in steering India towards a sustainable future by fostering the growth of battery recycling. The circular economy's cornerstone, battery recycling, addresses mineral scarcity and reinforces our supply chains, paving the way for self-sufficiency in battery materials. While regulations like the Electronics Waste Management Rule and Batteries Management Rule have strengthened the recycling industry, persistent challenges call for solutions. To further empower this sector, streamlined recycling policies and incentives for pioneering waste management solutions are imperative.

The rapidly growing adoption of electric vehicles is a catalyst for the EV battery recycling industry. Initiatives such as FAME, PLI, and other incentives should be amplified to fuel this momentum. A tailored PLI scheme dedicated to lithium-ion battery recycling will be a game-changer, amplifying the sector's growth while advancing India's sustainability goals. As we approach the budget, investing in these strategic measures will not only invigorate the recycling industry but also cement India's position as a global leader in sustainable practices.

'Regulatory framework coupled with financial incentives aimed at fostering R&D within EV sector stands as indispensable pillars'

Manideep Katepalli, Co–Founder, BikeWo

Despite last year's commendable 33 percent surge in EV registrations, our industry encounters persistent challenges. Chief among these hurdles is the imperative need for robust charging infrastructure, pivotal in inspiring confidence among potential buyers and propelling the widespread adoption of electric vehicles (EVs) as a sustainable mode of transportation.

Another barrier remains the relatively higher initial cost of EVs, often deterring consumers. However, the promise of life tax subsidies for electric vehicles and the availability of accessible EV financing options hold immense potential to mitigate this challenge.
The integration of EV infrastructure into Priority Sector Lending (PSL) is poised to bolster credit flow into the sector by mandating financial institutions to provide support, thus promising a significant boon.

A supportive regulatory framework coupled with financial incentives aimed at fostering research and development within the EV sector stands as indispensable pillars. These measures not only drive innovation but also attract investments, creating an environment conducive to widespread EV adoption. Ultimately, these strategic initiatives play a pivotal role in establishing an enduringly sustainable and eco-friendly transportation ecosystem.

'The open data standards and APIs for charging networks should be prioritized in the budget as this will encourage interoperability'

Dr. Lalit Singh, CEO, TelioEV

As the Union Budget 2024-25 approaches, the electric vehicle (EV) industry in India anxiously awaits the implementation of policies that will spur its expansion and advance the country's e-mobility goals. We anticipate continued support in the form of demand-side incentives, such as tax deductions for purchasers of electric vehicles and an extension of FAME-II subsidies. The development of a resilient EV charging ecosystem is of equal importance, especially in Tier II and Tier III cities, we urge the government to allocate substantial funds for the development of charging infrastructure.

The open data standards and APIs for charging networks should be prioritized in the budget as this will encourage interoperability and nurture a thriving software ecosystem by providing EV drivers with seamless access to any station, irrespective of the provider.

Additionally, we seek fiscal incentives such as tax rebates to support investments in R&D for software solutions that enable advanced charging. This will encourage innovation in areas like smart grid integration, dynamic pricing, and demand forecasting will optimize energy use and enhance charging efficiency.  By placing these measures as a priority, the budget has the potential to significantly impact India's EV revolution, thereby facilitating the transition to a more environmentally sustainable future.

‘Government is expected to continue FAME II subsidy for few years in response to decarbonising the environment’

Mayank Bindal, Founder & CEO, Snap E Cabs

One of the most anticipated schemes to be continued is the FAME II subsidy (Faster Adoption & Manufacturing Electric Vehicles). This subsidy was announced in 2019 having a validity for 3 years. It is expected that the government will continue this for the next few years in response to decarbonising the environment and achieve the targets of net zero goals.
Along with this, there is a proposal to reduce the GST on the Li-ion batteries from 18 percent to 5 percent overall, reducing the cost of acquiring EV's. Since batteries are a major cost component in EV's, the move to reduce the cost of batteries will make the product more lucrative for buyers.
Over the past 5 years the government has focused a lot on building strong infrastructure. It is expected to continue improving and make efficient investments in energy, especially green energy and sustainable energy. The focus is on transitioning from carbon dependent to energy efficient policies. The new transport policies being adopted by the state government is a testament to this shift. Many state transport authorities have announced the conversion of petrol/diesel cabs be converted into EV's by the end of this decade.
We look forward to EV financing getting priority sector lending status as the government's ambitious target of 30 percent penetration to be achieved by 2023.
‘We envision a budget that aligns economic growth with environmental responsibility’

Sameer Aggarwal, CEO & Founder, Revfin Services

Embracing a sustainable future requires bold steps, and in the upcoming budget, I advocate for a visionary approach towards renewable energy adoption. Investing in renewable energy infrastructure is not just an environmental imperative; it's an economic opportunity that can power our nation forward.
In the drive towards a greener tomorrow, the government can catalyze change by incentivizing renewable energy projects and R&D initiatives. By allocating resources to enhance solar and wind power capacities, we not only reduce our carbon footprint but also fortify our energy security.
Crucially, as the electric vehicle revolution gains momentum, integrating renewable energy into the national grid becomes paramount. A strategic allocation in the budget for renewable energy will not only power homes but also fuel the burgeoning electric vehicle segment. By creating an ecosystem where clean energy sources power our transportation, we pave the way for a sustainable and resilient future.
We envision a budget that aligns economic growth with environmental responsibility, driving the nation towards a future where renewable energy propels both our homes and our vehicles. It's not just an investment in power; it's an investment in a cleaner, brighter tomorrow for generations to come.

'The upcoming Union Budget holds pivotal significance in steering India towards its USD 5 tn economy milestone'

Harsh Shah, CEO, IndiGrid

As infrastructural development remains a cornerstone of economic progress, the upcoming Union Budget holds pivotal significance in steering India towards its USD 5 trillion economy milestone. InvITs hold a transformative potential in mobilizing private capital for infrastructure. Through InvITs, democratic ownership of crucial assets has been facilitated, thanks to commendable efforts by the Ministry of Finance and SEBI. Yet, to fully unleash the potential of this investment avenue, some imperative policy enhancements include, classifying InvITs as equity instruments, expanding their participation in mainstream indices and reducing the holding period for InvITs to 12 months for LTCG computation. Other desired steps that can be considered are increasing investment limits for insurance companies, permitting EPFO to  invest in InvITs and allow InvITs to bid for governments monetisation pipeline under NMP. To conclude, there are positive expectations from the Budget for policy amendments and increased allocations that boost reform implementation.

'Industry eagerly awaits the introduction of policies that could kickstart the demand for green hydrogen'

Srivatsan Iyer, Global CEO, Hero Future Energies

In response to the anticipated focus on sustainable energy in India's interim budget, our company is poised to actively contribute to the nation's green infrastructure. We are excited about the government's investment plans, which resonate with our commitment to deploy cutting-edge technologies in our ongoing solar and wind projects. With the government's allocation of Rs 35,000 crore, we anticipate a substantial acceleration in our projects, aiming to augment our plans to grow five times over the next five years. We also welcome the measures that support the COP 28 objectives, particularly as we strategize to enhance our contribution to the global tripling of renewable capacity.
Our industry eagerly awaits the introduction of policies that could kickstart the demand for green hydrogen, especially in sectors where it can have an immediate impact. Assured offtake would provide the certainty needed to attract significant investment into this transformative energy source. Moreover, we advocate for a more conducive fiscal environment, beginning with the reduction of GST rates on crucial components such as solar modules and electrolyzers, accelerating India's transition to clean energy. Additionally, as domestic manufacturing scales up and seeks to become more cost-competitive, temporary relief from import duties could help maintain the momentum of solar capacity expansion across the country.
We hope that the upcoming budget will reflect these aspirations, enabling India to further its leadership in renewable energy and to achieve its ambitious goals for a sustainable future.
'Danfoss anticipates pivotal announcements for sustainable cooling, green fuels & renewable energy sector'

Ravichandran Purushothaman, President, Danfoss India

As we approach the Union Budget 2024, Danfoss anticipates pivotal announcements for sustainable cooling, green fuels & renewable energy sector. We expect visionary policies that will not only accelerate the adoption of green & energy efficient technologies but also provide the necessary financial incentives required to hasten our sustainable growth. We hope the sector's outlay will align with our national goal of accelerating our Carbon neutrality & Climate Actions.
We look forward to comprehensive measures supporting renewables, green fuel mandates, sustainable tech research & development and innovative green financing mechanisms.
The government's commitment to net zero infrastructure development in the nation also opens up huge avenues for green transformation. This budget holds the key to unlocking the full potential of our renewable energy sector and propelling India towards a greener, energy secure & resilient future.

'2024 budget is crucial for aligning tire manufacturing and EVs, steering the industry toward sustainability'

Harinder Singh, Managing Director & CEO, Yokohama India

The upcoming interim budget, coinciding with elections, will set the tone for the government's future plans. The 2024 budget is crucial for aligning tire manufacturing and EVs, steering the industry toward innovation and sustainability. The tire industry hopes for strategic allocations that drive innovation in durable and eco-friendly tires. Simultaneously, the EV segment would expect incentivising development of the ecosystem, including charging infrastructure investments, and research support, fostering a greener automotive landscape.

India faces challenges in rubber production, with high duties on natural rubber. Adjusting duty rates is vital for cost competitiveness. Rising raw material costs and reliance on imports impact profits. Encouraging research, local sourcing under 'Make in India,' and adjusting duty structures will boost global competitiveness and sector resilience.

'Continued focus on expanding PPP will enable accelerating India’s infrastructure growth and ambitions'

Deepak Sharma, MD, CEO & Zone President, Greater India, Schneider Electric

India's economy is projected to grow at 7.3 percent in the ongoing financial year, a testament to the country's resilience amidst global uncertainties. The upbeat industry sentiment is fueled by strong domestic demand, robust capex cycle, and growing exports. As we await the upcoming budget, we are excited to see initiatives that bolster India's sustainable development, with a key focus on laying the foundation for a new energy landscape. At Schneider Electric we believe that new energy landscape promoted through green hydrogen, solar technologies, microgrids, electric vehicles etc. will play a crucial role in steering India towards achieving its decarbonization objectives. We are looking forward to continued investments by the Government of India to accelerate progress towards India’s position as a global powerhouse for manufacturing, innovation, AI, and digital. Continued focus on expanding Public Private Partnerships will further enable accelerating India’s infrastructure growth and ambitions.

'A faster implementation of Green Credit Programme will support the development of the sector'

Mahesh Girdhar, MD and CEO, EverEnviro Resource Management Pvt Ltd.


We anticipate the government's clear direction in establishing robust infrastructure for pipeline connectivity to Compressed Bio Gas plants, which could enable captive demand for biofuel. A framework for a grid system, like solar, would allow CBG production in one location and off-take in another, while maintaining the green properties of the molecule. This approach has the potential to be a game-changer. Offering green credits for industrial use and implementing taxes for those using fossil fuel-based molecules can further encourage the adoption of green energy.

To ensure the long-term viability of the biofuel sector, pricing mechanisms must be established based on prospective feedstock cost hikes or inflation. A standardized price mechanism for biomass procurement is critical for increasing output, and the implementation of Viability Gap Funding is likely to accelerate the construction of additional CBG facilities.

We also believe that emphasizing carbon credit trading will attract additional investments for CBG projects, bringing much-needed cash flow into the sector. A faster implementation of Green Credit Programme will support the development of the sector which will not only reduce carbon emissions but will also enable making soil healthier from organic matter rich Fermented Organic Manure (FOM) Liquid fermented Organic Manure (LFOM). Like CBG CGD Synchronization, a CBG Fertilizer Synchronization scheme for the mandatory consumption of CBG by fertilizer units would tremendously assist the industry.

'PLI scheme should also extend its benefits to MSMEs to level the playing field'

Tanmoy Duari, CEO, AXITEC Energy India Pvt. Ltd.

In the last financial year (2023-24), the government set aside INR 5,917.25 crore for solar energy. This time, for the upcoming financial year (2024-25), the plan should be to increase it to INR 8,000 crore (on average), expecting positive growth. In the previous year, the government wanted to create 50 solar parks, generating a total of 40,000 MW. Now, for this year, they are aiming even higher with a target of 75,000 MW (expected). In the upcoming budget, there should be increased incentives for MSMEs in the Indian solar manufacturing sector. Currently, the PLI scheme predominantly favors large Indian solar manufacturers. It should also extend its benefits to MSMEs to level the playing field; otherwise, competing with neighboring Asian countries will pose a challenge. The Indian Solar Industry is about to make big progress in 2024-2025. In the last financial year Budget, the government allocated INR 19,500 crore (USD 2.57 billion) for a scheme to boost manufacturing of high-efficiency solar modules. but the solar industry is expecting more things from the government this year.

'The existing PLI scheme holds promise, anticipated to significantly enhance the manufacturing infrastructure'

Ishver Dholakiya, Founder & Managing Director, Goldi Solar


The Indian government has played a significant role in accelerating the widespread installation of solar power and cultivating awareness regarding the advantages of renewable energy. A recent stride in this direction is the announcement of the Pradhan Mantri Suryodaya Yojana, which is geared towards making solar power accessible to the masses at an affordable rate. With this in mind, the industry awaits the Finance Minister's announcement in the upcoming interim budget, particularly regarding dedicated funds for the said residential rooftop scheme.

Furthermore, the existing Production-Linked Incentive (PLI) scheme holds promise, anticipated to significantly enhance the manufacturing infrastructure, and catalyse the broader adoption of solar energy.
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