Union Budget 2026-27 Unveils INR 20,000 Cr CCUS Plan, Customs Relief for Solar and Storage

Union Finance Minister Nirmala Sitharaman presented India’s 80th Union Budget in Parliament today, marking her ninth consecutive budget.

The Government has laid out a comprehensive strategy to secure India’s long-term energy future, accelerate the renewable energy transition, and strengthen domestic manufacturing across power and clean-tech sectors. Budget 2026-27 introduces major fiscal measures and ambitious schemes to reduce critical import dependence and build a resilient, sustainable energy ecosystem aligned with the goal of a Viksit Bharat.

In energy-sector announcements, the Finance Minister unveiled an INR 20,000 crore scheme for Carbon Capture, Utilisation and Storage (CCUS). The programme targets emissions from hard-to-abate industrial sectors, ensuring that high economic growth remains compatible with India’s climate commitments.

To boost domestic renewable manufacturing and cut import reliance, the Budget proposes key customs duty exemptions. These include extending duty exemptions on capital goods used for manufacturing lithium-ion cells to those used for Battery Energy Storage Systems (BESS), encouraging large-scale grid storage manufacturing in India.

The Budget also exempts Basic Customs Duty (BCD) on Sodium Antimonate, a critical raw material for solar glass manufacturing, lowering costs for domestic solar module producers. Further, BCD exemption on capital goods for processing critical minerals aims to build domestic refining capacity for lithium, cobalt and rare earths used in EVs, wind turbines and clean technologies.

For stable baseload clean power, the Budget extends BCD exemptions for nuclear power project imports until 2035 and expands coverage to all nuclear plants, irrespective of capacity, supporting deployment of newer reactor technologies.

In support of cleaner fossil alternatives, the entire value of biogas will be excluded from Central Excise duty on biogas-blended CNG, incentivising blending, waste-to-energy projects and lower transport emissions.

A major institutional reform includes restructuring Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) to improve operational efficiency, risk management and financing capacity for large-scale power and renewable infrastructure.

Energy security measures are aligned with the broader manufacturing push through initiatives such as the Scheme for Rare Earth Permanent Magnets, India Semiconductor Mission 2.0 and new Chemical Parks. Additionally, INR 2 lakh crore support to states under the SASCI scheme and investments in Dedicated Freight Corridors and National Waterways are expected to lower logistics costs for energy equipment and materials.

By committing to fiscal discipline while strategically deploying capital in energy security and renewables, Budget 2026-27 is expected to power India's sustained growth of around 7 percent with greater independence and environmental responsibility.

Following Budget 2026–27, leaders shared their insights with Energetica India as follows:

Vinay Thadani, Director & CEO – GREW Solar:
"Budget 2026 reinforces Viksit Bharat and Aatmanirbharta, prioritising energy security, manufacturing, and competitiveness. With INR 40,000 crore for initiatives like Semiconductor Mission 2.0 and domestic solar components, it boosts self-reliant industrial ecosystems, reduces imports, drives exports and employment, and accelerates India’s clean energy transition."

Sameer Gupta, Chairman – Jakson Group:
"Budget 2026–27 sets a growth-focused roadmap with INR 12.2 lakh crore capital expenditure, boosting energy, infrastructure, and domestic manufacturing. With INR 20,000 crore for carbon capture, infrastructure risk guarantees, and transport and urban development initiatives, it strengthens investor confidence, energy security, and sustainable, inclusive growth toward a Viksit Bharat."

Dr. Faruk G. Patel, Founder, Chairman & MD – KP Group:
"Budget 2026 takes significant steps for India’s clean energy value chain with INR 20,000 crore for CCUS, ~15 percent capital subsidy for lithium and nickel processing, customs duty reductions, and dedicated rare earth corridors in Odisha, Andhra Pradesh, Tamil Nadu, and Kerala, strengthening renewables, EVs, storage, and high-tech manufacturing supply chains."

Vinay Rustagi, CBO – Premier Energies:
"Budget 2026 is forward-looking, boosting energy security and domestic manufacturing. Key measures include INR 27,000 crore for PM-Surya Ghar and KUSUM, hi-tech tooling for precision equipment, import duty waivers for battery storage and critical mineral processing, and substantial support for carbon capture, nuclear, and other emerging clean energy technologies."

Sumant Sinha, Founder, Chairman & CEO – ReNew:
“Built like a roadmap for sharp turns and long highways, Union Budget 2026 balances youth employment, fiscal discipline, and domestic manufacturing. Focus on batteries, semiconductors, garments, critical minerals, CCUS, and next-generation nuclear technologies signals a resilient, competitive, and opportunity-ready economy poised to lead in clean-energy sectors.”

D.V. Manjunatha, Founder & CMD – Emmvee Photovoltaic Power Ltd.:
“Union Budget 2026 reinforces policy stability for renewable energy and manufacturing, shifting focus from incentives to execution, scale, and quality. Early domestic solar investors gain long-term confidence and visibility, while emphasis on operational excellence, cost competitiveness, and value-chain depth strengthens India’s position as a global clean energy manufacturing hub and supports sustainable growth.”

Devansh Jain, Executive Director – INOXGFL Group:
“The Union Budget 2026–27 underscores India’s commitment to a resilient, low-carbon energy system, aligning with INOXGFL’s clean energy strategy. Support for BESS, customs duty exemptions for lithium-ion cells, solar input relief, and INR 20,000 crore for CCUS strengthen grid stability, accelerate renewable integration, and build end-to-end domestic clean-energy value chains, fostering sustainable growth and industrial transformation.”

Siddharth Bhatia, Managing Director – Oyster Renewables & AB Energia:
"Union Budget 2026 sets a growth roadmap through infrastructure, domestic manufacturing, and energy security. Record capital expenditure, MSME support, rare earth focus, and customs duty exemptions for batteries and solar inputs will accelerate renewable energy deployment, strengthen the grid, and secure essential minerals for a sustainable, technology-led energy transition."

Vivek Gupta, Managing Director – Oswal Pumps:
"Budget 2026–27 balances fiscal discipline with high capital expenditure, strengthening India’s agriculture and rural economy. Focus on efficient irrigation, renewable energy, technology adoption, and rural infrastructure will boost farm incomes, improve water security, modernize farming practices, and enhance resilience, positioning agriculture as a strategic engine of sustainable growth."

Akshat Jain, CEO – KLK Ventures:
“The Union Budget 2026 is pivotal for India’s renewable energy, especially solar. Duty reductions on panels and components, customs exemptions for sodium antimonate and lithium-ion battery capital goods, enhance domestic manufacturing competitiveness, lower costs, strengthen supply chains, attract investment, and accelerate solar adoption—driving India’s clean energy transition and long-term sustainability.”

Navneet Daga, Co-founder & CEO – Zenergize:
"Budget 2026’s focus on electronics and semiconductor manufacturing boosts India’s EV and renewable energy ecosystem, reduces import dependence, generates jobs, and underlines the need for advanced components and long-term investment to achieve self-reliance in clean energy technology."

Manan Thakkar, Co-Founder & Managing Director – Prozeal Green Energy Ltd.:
“The Union Budget 2026–27 presents a forward-looking roadmap aligned with India’s Viksit Bharat vision and targeted growth above 7 percent. Reforms across taxation, power, urban development, mining, finance, and regulations boost competitiveness. Extending BCD exemptions for lithium-ion cell manufacturing will accelerate clean energy adoption across India’s manufacturing sector.”

Meenu Singhal, Regional Managing Director – Socomec Innovative Power Solutions:
"Union Budget 2026–27 drives India toward global technology leadership with INR 12.2 lakh crore capital outlay, Semiconductor Mission 2.0, INR 40,000 crore for electronics components, Rare Earth Corridors, and skilling initiatives. MSME Growth Fund and high-tech manufacturing focus will boost innovation, competitiveness, and employment, advancing the vision of an Aatmanirbhar, Viksit Bharat."

Atanu Mukherjee, President & CEO – Dastur Energy:
"The INR 20,000-crore CCUS allocation signals India’s pragmatic approach to industrial decarbonisation. For sectors like steel, cement, and chemicals, CCUS reduces emissions while protecting competitiveness and jobs. Focus on shared CO₂ infrastructure, risk support, and clear regulations can scale CCUS, integrating with power, fuels, and hydrogen strategies for sustainable growth."

Gaurav Dolwani, Founder & CEO – LICO Materials Pvt Ltd:
"Budget 2026 recognises recycling and secondary materials as key to India’s battery supply chain. Customs duty exemptions on lithium-ion battery waste and critical minerals improve feedstock availability, scale, and investment, enabling a circular supply chain, strengthening Make in India, and supporting domestic material security for sustainable battery manufacturing."

Bikesh Ogra, Vice Chairman & Global CEO – Jakson Green Ltd.:
"Budget 2026 positions India as a global clean energy and manufacturing leader. Focus on capital expenditure, domestic manufacturing, critical minerals, and energy security signals policy consistency, attracting global investors and enabling India to deliver scalable, export-quality renewable energy and green manufacturing solutions, boosting competitiveness and long-term growth."

Rahul Munjal, Chairman & Managing Director – Hero Future Energies:
“Union Budget 2026 sets a pragmatic, visionary roadmap for a self-reliant India with inclusive growth, robust infrastructure, domestic manufacturing, and future-ready workforce. Customs duty exemptions for lithium-ion cells, BESS, and clean-energy inputs scale domestic capacity, while CCUS and nuclear support create credible transition pathways and stable capital-intensive energy investments.”

Vimal Kejriwal, Managing Director – KEC International:
“India’s Union Budget 2026 reinforces infrastructure-led growth with capital expenditure of INR 12.2 lakh crore, 20 new waterways and seven high-speed rail corridors. This creates sustained demand for the EPC sector across transmission, highways, railways and water infrastructure, supporting private investment, domestic supply chains and inclusive economic growth.”

Girish Tanti, Chairman – IWTMA:
“Budget 2026 demonstrates India’s resilience and growth commitment. With INR 12 lakh cr capital expenditure, INR 1 lakh cr energy spending, focus on renewables, grid modernization, energy security, PLI incentives, R&D tax benefits, and bond market reforms, the Budget accelerates the energy transition, strengthens Atmanirbhar Bharat, and supports sustainable, inclusive economic growth and prosperity.”

Anant Badjatya, CEO – Indofast Energy:
"Budget 2026–27 strengthens India’s electronics and semiconductor ecosystem, accelerating EV adoption. With INR 40,000 crore for electronics components, customs duty exemptions for BESS, and Semiconductor Mission 2.0, the initiatives localise EV manufacturing, enhance supply chain security, reduce import dependence, and support scalable, cost-efficient, and accessible electric mobility across two- and three-wheelers."

Ankur Khaitan, MD & CEO – TACC Ltd.:
“With India’s projected 7.4 percent GDP growth, Union Budget 2026 reinforces domestic manufacturing and energy transition. BCD exemptions for lithium-ion battery equipment, INR 34,500 cr for the National Critical Mineral Mission, and INR 20,000 cr for CCUS lower capital intensity, support localisation, and strengthen India’s battery ecosystem, clean energy, and industrial decarbonisation efforts.”

Tanmoy Duari, CEO – AXITEC Energy India Pvt. Ltd.:
"Budget 2026 provides a pragmatic blueprint for India’s energy transition. INR 1,775 crore for solar, BCD exemptions on equipment and solar glass, and REC-PFC restructuring strengthen financing, reduce costs, and boost solar competitiveness. These measures support renewable targets, investor confidence, and a resilient, affordable, and sustainable energy future."

Rajesh Gupta, Managing Director & Founder – Evergreen Recyclekaro India Ltd:
“Union Budget 2026 sharpens India’s strategic focus on rare earths and critical inputs for electronics, clean energy and advanced manufacturing. Dedicated rare earth magnet corridors in Odisha, Kerala, Andhra Pradesh and Tamil Nadu, continued focus on permanent magnets, cluster-based chemical parks, ISM 2.0 and electronics components schemes strengthen end-to-end capability and long-term domestic supply resilience.”

Shekhar Singal, Managing Director – Eastman Auto & Power Ltd.:
“The Union Budget reinforces India’s energy transition, backing domestic manufacturing, clean mobility, and decentralized renewable adoption with storage. BCD exemptions, 35 capital goods for EV batteries, and INR 40,000 crore for electronics manufacturing boost batteries, storage, and advanced manufacturing. Focus on grid-scale and rooftop solar accelerates decentralised energy access and supports India’s 500 GW non-fossil target.”

Riju Jhunjhunwala, Managing Director – Bhilwara Energy Ltd.:
"Budget 2026–27 demonstrates fiscal discipline with INR 12.2 lakh crore capital expenditure, supporting sustainable growth and infrastructure-led development. Initiatives like Semiconductor Mission 2.0 and customs duty exemptions for BESS and solar glass strengthen energy security, promote technology adoption, and enhance feasibility of renewable energy projects for a low-carbon, resilient India."

Sanjay Gupta, CEO – Apollo Green Energy Ltd.:
"Budget 2026 treats energy transition as a holistic mission, strengthening manufacturing and long-term resilience. Measures on solar glass, battery storage, and critical minerals enhance project economics, domestic supply chains, and round-the-clock clean power. These steps position India as a credible global partner while supporting rapid, structurally resilient solar growth."

Saurabh Marda, Co-Founder & Managing Director – Freyr Energy:
"Restructuring of REC and PFC will strengthen solar financing, improving access for consumer loans. Customs duty exemptions on solar glass and support for BESS reinforce India’s domestic clean energy ecosystem. Combined with PM Surya Ghar, these measures accelerate distributed solar adoption, making clean energy more accessible and affordable nationwide."

Hiren Pravin Shah, Managing Director & CEO – Replus Engitech:
"Budget 2026 marks a turning point for India’s battery and BESS ecosystem, recognising storage as infrastructure. Measures like faster VGF payouts, GST rationalisation, zero-duty access, ACC-PLI 2.0, and Battery Aadhaar strengthen domestic supply chains, improve project bankability, and expand residential adoption under PM Surya Ghar 2.0, central to the clean energy transition."

Govind Sankaranarayanan, Co-founder & COO – Ecofy:
"Budget 2026 strengthens the NBFC and MSME ecosystem with INR 7 lakh crore liquidity support, SME Growth Fund, and Self-Reliant India Fund top-up. Coupled with customs duty exemptions on BESS and solar glass inputs, these measures enhance financing, de-risk lending, and support domestic clean energy deployment and manufacturing competitiveness."

Nishant Arya, Vice Chairman – JBM Group:
"Budget 2026–27 strengthens India’s domestic industrial capabilities from critical minerals to advanced batteries and power electronics. Rare earth corridors, ISM 2.0, duty relief, and MSME-focused measures reduce supply-chain risk, boost manufacturing competitiveness, support e-bus deployment, and enable broad-based growth, skills development, and a self-reliant, sustainable industrial ecosystem."

Harry Bajaj, Founder & CEO – Mobec Innovation:
"Budget 2026 deepens India’s energy transition by extending customs duty exemptions for lithium-ion cell manufacturing and critical mineral processing. These measures strengthen domestic storage capabilities, support EV charging infrastructure, reduce resource dependence, and reinforce a resilient, end-to-end battery ecosystem for scalable, smart, and sustainable mobility solutions."

Jalaj Gupta, Managing Director – Montra Electric:
"Budget 2026 lays a strong foundation for India’s clean mobility and advanced manufacturing. Supporting lithium-ion cell manufacturing, rare earth processing, and ISM 2.0, these measures enable an integrated EV supply chain, deepen localisation, develop skilled talent, and strengthen India’s position as a global hub for sustainable mobility and high-tech manufacturing."

Benjamin Lin, President – Delta Electronics India:
“Budget 2026 balances India’s manufacturing and technology growth. With INR 40,000 crore for Semiconductor Mission 2.0, enhanced electronics component outlay, and a INR 10,000 crore MSME growth fund, it strengthens large-scale manufacturing, supplier ecosystems, innovation, and capabilities, laying a foundation for sustainable, technology-led growth and a globally competitive electronics hub.”

Vikram Handa, Managing Director – Epsilon Advanced Materials Pvt. Ltd.:
"Budget 2026 strengthens India’s lithium-ion battery and critical minerals ecosystem, with customs duty exemptions on raw materials, capital equipment, and cell manufacturing improving project viability. Focus on domestic processing, upstream materials, and CAPEX incentives is crucial to build a reliable, competitive, and resilient supply chain supporting India’s energy transition and Atmanirbhar Bharat."

Ravi Mehra, Managing Director – Uno Minda:
“We welcome Union Budget 2026–27 for strengthening India’s manufacturing ecosystem, advancing Viksit Bharat, and fostering Aatmanirbharta. With ₹40,000 cr for Electronics Components Manufacturing, India Semiconductor Mission 2.0, rare-earth corridors, and 35 capital goods added for EV battery manufacturing, the Budget boosts domestic value chains, reduces import dependence, and supports sustainable, self-reliant industrial growth.”

Jaideep N. Malaviya, Managing Director – Malaviya Solar Energy Consultancy:
"The INR 40,000 crore allocation for electronics manufacturing, coupled with the INR 10,000 crore growth fund, will boost domestic production of inverters, charge controllers, and tracking sensors for the solar industry. These measures also create opportunities for exports, strengthening India’s position in the global clean energy supply chain."

Kushagra Nandan, Co-Founder – LNK Energy:
"Budget 2026 boosts India’s renewable energy with INR 1,775 crore for Solar Power (Grid) targeting 7,000 MW via Solar Parks and 1,100 MW through CPSUs, INR 5,000 crore for PM-KUSUM, BCD exemptions for lithium-ion cells and solar glass, and INR 599.99 crore for Green Energy Corridors, strengthening manufacturing, financing, and grid integration."

Rajiv Ranjan Mishra, Managing Director – Apraava Energy:
"Budget 2026 strengthens India’s energy ecosystem with INR 20,000 crore for CCUS, BCD exemptions for lithium-ion cells and solar glass, and INR 40,000 crore for India Semiconductor Mission 2.0. These measures enhance grid reliability, renewable integration, domestic manufacturing, and system resilience, creating an investment-ready framework for a future-ready, competitive energy infrastructure."

Rahul Gautam, Co-Founder – Exeqliq Tech Solutions:
"Budget 2026 boosts India’s deep-tech manufacturing with focus on semiconductors, solar, storage, EVs, and clean energy infrastructure. With INR 10,000 crore for champion MSMEs, TReDS and GeM integration, the tri-Kartavya approach balances growth, capability building, and inclusion, laying the foundation for globally competitive engineering goods and sustainable economic transition."

Rupal Gupta, Founder, Managing Director & CEO – TrueRE Oriana Power:
Budget 2026–27 is an inflection point in India’s energy transition. The INR 20,000 crore CCUS outlay targets power, cement, steel, and refining, while customs duty rationalisation for lithium-ion cells and critical inputs, plus PFC/REC restructuring, strengthens grid stability, financing, and clean energy deployment, laying a foundation for industrial decarbonisation."

Abhijeet Sinha, National Program Director – Ease of Doing Business:
"Budget 2026 transitions India from the 2014–2024 Startup and MSME-led growth to a 2025–2030 emerging economy agenda, focusing on Cultural Economy, Service Exports, Circular Tech, Ease of Living, and Mobility. Measures include credit for women-led MSMEs, climate-tech investment, lower compliance, and EV infrastructure for citizen-visible outcomes."

Sharan Bansal, Director – Skipper Ltd.:
"Budget 2026 raises capital expenditure to INR 12.2 trillion, up from INR 11.2 trillion, targeting a 4.3 percent fiscal deficit. With clear focus on long-term infrastructure, capital formation, and accountability, it provides visibility for developers and manufacturers, facilitates grid modernisation, and supports India’s energy transition with stable, investment-ready policies."

Shreya Mishra, CEO – SolarSquare:
"Budget 2026 prioritises residential solar, with nearly 70 percent of the MNRE budget and INR 22,000 crore under PM Surya Ghar dedicated to this segment. As India’s energy demand grows, decentralised solar strengthens energy security, supports grid resilience, and enhances independence, making residential solar a cornerstone of the renewable energy transition."

Pawan Kumar Garg, Chairman & Joint MD – Fujiyama Power Systems Ltd.:
"Budget 2026 drives technology-led growth and sustainable energy transformation. India Semiconductor Mission 2.0 boosts R&D and manufacturing, while focus on solar, storage, grid readiness, and domestic manufacturing strengthens energy security. These measures accelerate India’s clean energy and tech ambitions, creating opportunities for industrial growth and innovation."

Deepak Jain, Chairman – Lumax Group:
"Budget 2026 strengthens the macroeconomic foundation with focus on capital expenditure and MSMEs. The INR 4,000 crore boost to the Self Reliant India Fund and duty exemptions on lithium-ion cell equipment support clean mobility, advanced manufacturing, and the auto components sector, driving growth in infrastructure, manufacturing, and energy transition."

Raviteja Chivukula, Co-founder & CEO – Perceptyne Robots:
"Budget 2026 accelerates India’s manufacturing transformation by scaling strategic sectors, strengthening capital goods, and creating champion MSMEs. Focus on high-tech tooling, automated hubs, AI applications, and equity and liquidity support for MSMEs builds an ecosystem for robotics and advanced manufacturing, enhancing productivity, efficiency, and global competitiveness."

Amit Badlani, Director – Vihaan Clean & Green Tech:
"Budget 2026–27 signals sustainability as central to India’s growth. Measures like full excise exemption on biogas-blended CNG, INR 20,000 crore CCUS push, and investments in Tier II/III infrastructure strengthen clean-tech adoption. Effective city- and state-level execution will be key to translating these initiatives into tangible environmental and economic impact."

Vasudha Madhavan, CEO & Founder – Ostara Advisors:
"Budget 2026 shifts from aspiration to execution. Rare earth corridors strengthen domestic manufacturing, while the INR 20,000 crore CCUS commitment enables decarbonisation of hard-to-abate sectors like power, steel, and cement. Programmatic implementation ensures industrial emissions reduction, energy security, and a pragmatic, economically aligned path toward India’s net-zero goals."

Manish Dabkara, Chairman & MD – EKI Energy Services; President – Carbon Markets Association of India:
"Budget 2026 marks a turning point for industrial climate action. The INR 20,000 crore CCUS outlay links decarbonisation with mainstream industry, while policy clarity supports carbon markets and climate finance. Sustainability and growth are aligned, enabling private capital deployment and driving implementation readiness across hard-to-abate sectors."

Piyush Goyal, Co-Founder & CEO – Volks Energie:
“Budget 2026 marks a decisive shift toward resilient, future-ready infrastructure, with INR 12.2 lakh crore capital outlay expanding India’s backbone. Exempting basic customs duty on BESS manufacturing capital goods lowers costs, strengthens domestic manufacturing, and accelerates storage integration into large projects, supporting peak demand management, grid stability, and sustainable growth aligned with climate goals and long-term competitiveness.”

Raju Kumar, Partner & Energy Tax Leader – EY India:
“Budget 2026 treats energy transition as industrial resilience and system reliability. Rare Earth Corridors, customs-duty exemptions for critical-mineral processing and BESS, INR 20,000-crore CCUS, and nuclear incentives strengthen input security, reduce project costs, unlock private capital, and accelerate storage-backed renewables, while PFC and REC restructuring improves credit flow and execution across the power sector.”

Rishi Srivastava, Co-founder – Offgrid Energy Labs:
“Union Budget 2026–27 treats advanced manufacturing and energy storage as long-term national capabilities. BCD exemptions for BESS capital goods and duty relief for critical-mineral processing address structural cost and capability challenges, strengthening the storage manufacturing ecosystem and supporting sustainable, technology-driven growth and resilient energy infrastructure.”

Dr Vibha Dhawan, Director General – TERI:
“Union Budget 2026 advances India’s clean, secure, and innovation-driven growth. Focus on nuclear, solar, BESS, AI-led productivity, digital infrastructure, and precision agriculture strengthens energy diversification, efficiency, and rural transition. These measures lay a strong foundation for sustainable growth, distributed renewables, and India’s Viksit Bharat vision by 2047.”

Rahul Gautam, Co-founder – Exeliq Tech Solutions:
“The Budget is a positive step towards India’s deep-tech manufacturing. Focus on semiconductors, Indian IP, solar, storage, and clean energy infrastructure strengthens self-reliance. With a INR 10,000 crore MSME fund, TReDS and GeM integration, the tri-Kartavya approach balances growth, capability building, and inclusion for globally competitive engineering goods and services.”

Ashwin Shankar, CEO & Founder – BatteryPool:
“The exemptions on lithium-ion cell inputs strengthen the ecosystem, making batteries affordable for 2W/3W fleets and e-rickshaws. Duty waivers on capital goods reduce costs, increase uptime, and ensure reliable power for gig workers. This Atmanirbhar approach builds resilient supply chains, scales inclusion, and drives India’s clean mobility revolution.”