The Union Budget for the financial year beginning April 2023 has proposed an allocation of ₹35,000 crore for energy transition initiatives.
“This Budget provides ₹35,000 crore for priority capital investments towards energy transition and net-zero objectives, and energy security by the Ministry of Petroleum & Natural Gas (MoPNG),” Finance Minister Nirmala Sitharaman said in her budget speech on Wednesday.
Besides, to steer the economy on the sustainable development path, Battery Energy Storage Systems (BESS) with a capacity of 4,000 MWh will be supported with viability gap funding. A detailed framework for pumped storage projects will be formulated, she added.
Furthermore, the inter-state transmission system for evacuation and grid integration of 13 GW renewable energy from Ladakh will be constructed with an investment of ₹20,700 crore, including central support of ₹8,300 crore, the Minister said.
“The government is implementing many programmes for green fuel, green energy, green farming, green mobility, green buildings, and green equipment, and policies for efficient use of energy across various economic sectors. These green growth efforts help in reducing carbon intensity of the economy and provide for large-scale green job opportunities,” Sitharaman noted.
The recently launched National Green Hydrogen Mission, with an outlay of ₹19,700 crore, will facilitate transition of the economy to low-carbon intensity, reduce dependence on fossil fuel imports, and make the country assume technology and market leadership in this sunrise sector.
The target is an annual production of 5 million tonnes by 2030.