Budget 2022 signify a major shift towards green economy

Leaders in the electrical and energy sectors are optimistic about increasing indigenous manufacturing of solar products in the coming years, thanks to announcements made during the Budget 2022 that focus more on energy transition, energy storage, and increased capacities to expand RE targets in the coming years.

Inder T. Jaisinghani, Chairman and Managing Director, Polycab India Ltd.

The Budget has hit the right chords in terms of focus on inclusive growth, Amrit Kaal of structural development and achieving our long-term vision of Atma Nirbhar Bharat. Urban planning and development should be a pressing priority if we wish to unlock the true potential of India, and I am glad the government is aptly addressing it. Overall, leveraging technology, nurturing innovation, placing a strong emphasis on green energy, and promoting clean mobility systems is clearly a progressive stride towards sustainable development.

Jaideep Mukherji, CEO of Smart Power India

Budget 2022 has clearly laid a major focus on the green energy transition, reducing its carbon footprint, and inclusive economic growth. As we move towards a greener economy, the role of distributed renewable energy as a catalyst in the empowerment of MSMEs, job creation, and reforms in agriculture will be crucial. New initiatives to encourage productive use of clean energy in rural areas, driven by DRE, can be of great value to the rural as well as the national economy.

Vipul Ray, President, IEEMA

IEEMA welcomes the Union Budget 2020. The focus is clearly on energy transition through various measures that give a boost to solar energy, storage, batteries, and e-mobility that will pave the way to achieving India’s commitment to tackling clean energy and tackling climate change. The zero fossil fuel policy, battery swapping policy, and focus on charging infrastructure for the EV ecosystem will provide the impetus for a future-ready electrical and allied electronics sector. Also, the increased focus on infrastructure through the Gatishakti master plan and Atmanirbharata in defence will open up more business opportunities for the electrical and allied electronics industry.

Ashish Bhandari, MD & CEO, Thermax

The Union Budget is a promising one, looking to build long-term growth as the economy recovers from the impact of the COVID-19 pandemic. Specifically for the energy sector, there are many positives from this budget. Sovereign Green Bonds are a remarkable step forward for funding projects with a focus on using cleaner alternatives in every sector. This will help reduce the overall carbon footprint of the Indian economy and help achieve the renewable energy target of 175 GW by the year 2022. The additional allocation of 19,500 crore to boost the manufacturing of solar modules under the government’s flagship PLI scheme will also help achieve the goal of 280 GW of installed solar capacity by 2030.

Vimal Kejriwal, MD & CEO, KEC International Ltd.

I applaud the forward-thinking, CapEx-led Budget 2022, which includes a 35% increase in spending.A strong focus on improving the safety of Indian Railways, faster implementation of metro rail systems, infrastructure status for data centres, along with emphasis on PM Gati Shakti with significant allocation of facilities, augurs well for KEC International Ltd. and our well-diversified businesses. Further, initiatives such as the use of surety bonds as a substitute for bank guarantees, a cap on the surcharge of AOPs and consortiums at 15 percent as against 37 percent earlier, and an end-to-end online e-Bill System to enhance transparency are steps in the right direction for EPC contractors such as KEC.

Tulsi Tanti, Founder and Chairman, Suzlon Group

This is a landmark budget for prioritising renewable energy in line with our commitments at COP26. especially the green bond announcement, as this will bring about the much needed investment in green energy projects. Battery swapping and support for distributed renewable energy projects are also critical announcements that could change the course of our energy roadmap. Also, we need to accelerate the transition to a carbon neutral economy and reduce the exorbitant cost of oil imports. We must have incentives in place for the generation of green fuels. This is a critical aspect so far.

Mahesh Palashikar, President, GE South Asia

The launch of the sovereign green bonds is evidence of the government’s active support for “green”, which will significantly help reduce carbon intensity in the years to come. For India to achieve its climate goals, financing is the need of the hour. This will require deep public-private partnerships. We welcome this encouragement to private industry to take up the design and development of military platforms and equipment in collaboration with DRDO. We are committed to bringing those technologies in the areas of sustainable aviation, green hydrogen, emission controls and decarbonisation to India to support the country’s goals.

Adarsh Das, Co-Founder and Chief Executive Officer, SunSource Energy

We welcome the inclusion of “climate action” as one of the key pillars of the budget. Several important announcements, such as an additional allocation of 19,500 crore for the PLI scheme for module manufacturing, sovereign green bonds for funding solar projects, and a robust battery swapping policy, will pave the way for reaching the target of 500 GW of non-fossil energy capacity by 2030 and achieving net-zero by 2070. The clarity on import duties on solar cells and modules will help the local manufacturing capacity ramp up to meet both Indian and global demand for solar modules. While the higher duty will increase the cost of setting up solar plants, we believe that in the long term, it will be a net positive for the Indian industry and developers.

Animesh A. Damani, Managing Partner, Artha Energy Resources

The sheer inclusion of renewable energy (RE) and cleantech in the budget speech by the FM is a clear indicator of the increased prominence that the RE segment has had in the last few years! The interoperability of energy storage is going to revolutionise the consumption of RE in India. It is not only going to improve logistics for EV users, but also create a micro-economy that will create budding entrepreneurs in the segment. ESS and grid scale battery systems as an infrastructure will attract financial gains and increase scalability, further eradicating the hurdles for DISCOMs in opting for RE for intermittent supply.

Satpal Singh, CEO, Numeric

The decision by the government to include data centres and energy storage systems in the harmonised list of infrastructure sectors is a welcome move. This would also spur the UPS industry towards further growth. Major allocations pertaining to the growth of renewable energy, energy efficiency, electric mobility, energy savings and efficiency in commercial buildings, grid-connected energy storage, among others, are indicative of the commitment to sustainability. The new Vibrant Villages Programme is a welcome move which is expected to trigger development in the villages around the country’s infrastructure.