Power industry leaders hail Budget 2024-2025

The experts are optimistic and view this budget as a significant step towards bolstering energy security and advancing global sustainability commitments of India.

Announcing the Budget, Finance Minister Nirmala Sitharaman outlined a strategic plan to advance India towards a sustainable energy future. Emphasising balanced growth, energy security, and environmental sustainability, the Minister introduced a range of policies and initiatives aimed at transforming the nation’s energy sector. She outlined pumped storage projects for renewable energy integration and introduced the PM Surya Ghar Muft Bijli Yojana, providing free rooftop solar electricity to 1 crore households. FM emphasised the nuclear energy programme with funding for research and development of small reactors. One of the major announcements came for a joint venture between NTPC and BHEL in the Advanced Ultra Super Critical (AUSC) thermal power technology. Overall, this budget promotes energy self-sufficiency and supports local manufacturers under the ‘Vocal for Local’ initiative.

Amit Jain, Global CEO of Sterling and Wilson Renewable Energy Group, expressed his support, stating, “As a leader in the renewable energy sector, we feel that the recent budget announcement is an acknowledgement of the industry’s huge potential in terms of meeting India’s global sustainability commitments, ensuring the nation’s long term energy security, and providing access to affordable and clean power source for the people.”

“We commend the government’s move to support energy transition by expanding the list of exempted capital goods for use in the manufacture of solar cells and panels in the country. The PM Surya Ghar Muft Bijli Yojana which involves installation of rooftop solar plants to enable one crore households to obtain free electricity is a step in the right direction and shall promote a more sustainable future,” he added.

Amit further stated that the announcement to fully exempt 25 critical minerals and reduce BCD on two of them will assist the renewable energy sector, since it shall provide a major fillip to the processing and refining of such minerals and help secure their availability. “The proposed policy to promote pumped storage projects for electricity storage will help facilitate smooth integration of growing renewable energy share thereby reducing challenges posed by its variable and intermittent nature. Expansion of India’s renewable energy infrastructure – both greenfield and brownfield will require skilled workforce to ensure efficient project execution, while reducing cost and time overruns. We therefore welcome the government’s focus towards upskilling 20 lakh youth over a 5-year period and upgrading 1000 Industrial Training Institutes,” he said.

The PM Surya Ghar Muft Bijli Yojana has been launched to install rooftop solar plants, providing free electricity up to 300 units per month to 1 crore households. Achieving 1.28 crore registrations and 14 lakh applications through the scheme is a remarkable feat indeed. Gautam Mohanka, CEO of Gautam Solar said, “We at Gautam Solar are aligned with the Prime Minister’s vision of “Vocal for local,” which opens new growth avenues for indigenous players and are committed to supporting the country’s renewable energy goals by employing our capacities for optimal returns.”

Another significant highlight of the budget is the rationalisation of long-term capital gain taxation for business trusts like InvITs and REITs, aligning them with equity taxation.  Harsh Shah, CEO of IndiGrid, welcomed the budget, stating, “We welcome this significant change in rationalisation of the long-term capital gain taxation for Business trusts in this budget. InvITs/REITs getting taxed at parity with equities will enhance their attractiveness for investors and will strengthen their position as platforms providing superior risk adjusted returns. We believe that this will also enable InvITs and REITs to become part of stock exchange indices, which will add significant liquidity and momentum.”

Ratul Puri, Chairman of Hindustan Power Group, commented, “The Union Budget 2024’s emphasis on energy security as a key priority is commendable. The government’s plan to develop a comprehensive policy for balanced energy transition, addressing both job creation and environmental sustainability, can address challenges in the renewable energy sector and help us combat climate change.” He said that the PM Surya Ghar Muft Bijli Yojana positive reception and the financial support for small and medium enterprises to adopt cleaner energy forms are significant developments. Expanding the exemption list for capital goods used in solar cell and panel manufacturing will boost solar projects. These initiatives will fuel India’s growth, create jobs, and advance the decarbonisation of the economy.

Shivanshu Thaplyal, Partner of Khaitan & Company stated that the government’s commitment to significant investments in the infrastructure sector remains steadfast. “Allocating funds equivalent to 3.4% of India’s GDP for infrastructure development is a substantial boost for private sector growth. Additionally, the introduction of a new market-based financing product is a commendable initiative, further enhancing the potential for robust infrastructure expansion. These measures are poised to drive economic progress and development across the nation,” he said.

Udit Garg, CEO & Director of Kundan Green Energy affirmed, “In my view the union budget bodes well for the green energy and renewables sector in India. The initial broad-strokes of policy will foster demand while encouraging the industry to increase capacities. This is complemented by steps to augment energy security. The Government ‘s rooftop solar policy is of latitudinal importance and will be a boon for power to every home, it will have exponential impact on the country’s renewable agenda helping us leapfrog to goals. Similarly, pumped storage will be a ground resilience for hydropower.”

Ramnath Iyer, CEO & Co-Founder of ESGDS, stated, “‘This budget is a crucial step forward for adoption of green energy. Finance Minister Nirmala Sitharaman highlights the budget’s strong emphasis on climate resilience. Expanding the list of exempted capital goods to solar energy projects is crucial for accelerating the transition to green energy. As the world’s third largest GHG emitter, emissions reduction in India is a global priority. The development of a taxonomy for climate finance will provide the required standardisation and transparency to rapidly globalise our green bond and green finance market. This year, the budget also strengthens the regulatory framework to support green housing. This could include implementing stricter energy efficiency standards for new green building projects, encouraging the use of sustainable materials and promoting environmental conservation.”

Venkat Garimella, Vice President – Strategy & Sustainability, Greater India, Schneider Electric stated that the Union Budget 2024-25 underscores the government’s commitment to sustainable nation building, with a pronounced focus on energy transition and youth development. He said, “The budget’s support for research & development of newer technologies to speed-up the energy transition, announcement on developing a roadmap for updating the emissions targets of hard-to-abate industries, and overall emphasis on cross-industry energy efficiency, are commendable measures that will build a green economy.”

He further stated, “Schneider Electric is committed to supporting the government’s sustainability efforts and pave the way for a decarbonised economy. Additionally, FM Sitharaman’s announcement on offering internships to 1 crore youth over five years, with the top companies funding the training costs through their CSR contributions, strategically places the private sector at the forefront. At Schneider Electric, we welcome this strategic approach to promote holistic economic development, which will eventually drive India closer to its sustainability goals.”

Anil Rai Gupta, CMD, Havells India announced, “We extend our heartfelt congratulations to the Government of India for presenting a visionary and forward-looking Budget for 2024-25. The ‘Pradhan Mantri Suryodaya Yojna’ initiative stands out as a beacon of innovation, empowering one crore homes with solar panels and providing 300 units of free electricity monthly. By building on this visionary initiative, India can solidify its position as a global leader in the clean energy movement, paving the way for a brighter, more sustainable tomorrow. This budget sets a robust foundation for India’s growth trajectory and reinforces the vision of a sustainable and inclusive future. We look forward to aligning our efforts with these transformative initiatives and contributing to the nation’s progress.”

Sanchit Sekhwal Goyal, Director of Su-Kam Power Systems Limited welcomed the Budget saying “SuKam welcomes the Ministry of Finance’s decision to fully exempt the custom duty on critical minerals which will reduce the price of lithium-ion batteries and consequently making electric vehicles more affordable. The Finance Minister’s emphasis on expanding the electric vehicles ecosystem through increased usage in the public transport network, is a forward-looking move. By championing these initiatives, the government reaffirms its commitment to climate control. EVs contribute significantly to reducing greenhouse gas emissions, and their widespread adoption aligns with global efforts to combat climate change. It’s heartening to see this focus on both affordability and environmental responsibility.”

Preeti Bajaj, MD & CEO, Luminous Power Technologies affirmed, “The budget announcement has provided the much-needed boost to the energy sector underscoring the commitment to energy security and sustainability. While the interim budget announced a strategy to sustain high and more resource-efficient economic growth, and security in terms of availability, accessibility, and affordability, the renewable energy players will be awaiting the policy document on appropriate energy transition pathways.”

She further stated that the Government’s proposal to expand the list of exempted capital goods used in the manufacturing of solar panels is a significant step towards promoting solar energy and driving the energy transition. Aligning with India’s commitment to achieving net zero, we will continue evolving and innovating our efforts towards the adoption of rooftop solar since solar energy holds the potential for contributing to a better planet and a sustainable future.

Miniya Chatterji, Founding Director, Anant School for Climate Action, and CEO, Sustain Labs Paris opined, “The government has laid its focus on energy security as one of the pillars in the Union Budget 2024. The new policy document on India’s energy future is much awaited, and I expect it to include the plans to achieve rooftop solarisation, enhance electric vehicle infrastructure, and promote biodegradable polymers & bioplastics – as was announced in the interim budget in February.”

The PM Suryaghar Muft Bijli Yojana, offering up to 300 units of free electricity monthly to 1 crore households, will enhance rooftop solar adoption. Capt. Ishver Dholakiya, MD and Founder of Goldi Solar commented, “We commend the Government of India for its 2024-25 forward-looking budget. At Goldi, we welcome the government’s initiative to offer 300 units of free electricity a month to thousands of households to promote rooftop solar. This will give every household an annual savings of Rs. 15,000 – 18,000 and catalyse renewable sector growth. While we await more positive announcements about manufacturing, imports, and technological advancements in the July budget, we thank our government for its relentless efforts to make India a global leader in responsible economic development.”

Gopal Kabra-Founder & MD- GK Energy stated, “The budget can be termed as progressive aimed at bolstering the solar sector’s growth and sustainability and we welcome the budget proposals. The government’s commitment to increasing investment in renewable energy was evident through significant allocations for solar infrastructure development, and energy storage solutions. Notably, the custom duty exemption on capital goods for solar cells and panels stands out as a pivotal move. This exemption is expected to lower production costs, making solar energy more affordable and accessible.”

Sameer Gupta, Chairman & Managing Director of Jakson Group emphasised that the Union Budget 2024 is a major milestone for the nation, fostering economic growth, infrastructure development, and energy independence. He said, “The PM Suryaghar Muft Bijli Yojana, aimed at installing rooftop solar panels in 1 crore households to provide 300 units of free electricity, is transformative in making sustainable energy accessible. This will boost solar adoption in the residential sector and drive economic growth. Special attention has been given to MSMEs and manufacturing. The support includes a Credit Guarantee Scheme, term loans for machinery, and technology financing packages. These measures will help MSMEs scale up and enhance competitiveness.”

Hanish Gupta, Founder & CEO of Sunkind Energy affirmed, “We welcome Finance Minister Smt. Nirmala Sitharaman’s budget that resonates with the spirit of the vision of Viksit Bharat 2047. The budget marks a seminal shift for India’s renewable energy sector. By equipping one crore households with rooftop solar panels through the PM Suryaghar Muft Bijli Yojana, the government is taking a big step toward reducing our reliance on fossil fuels and reshaping our energy future.”

He further stated that the expanded exemption for capital goods in solar panel production is an astute move, designed to elevate domestic manufacturing capabilities and make solar energy more affordable. “We also appreciate the government’s new initiative to promote job creation in the manufacturing sector and motivate first-time employees to take part and contribute to the growing GDP of the country. These bold initiatives underscore India’s unwavering dedication to its ambitious target of 500 GW of renewable energy by 2030, setting the stage for a brighter, cleaner tomorrow,” he added.

Rajinder Kaul, Chairman & Managing Director, Sharika Enterprises Limited opined, “The Indian government’s revelation of expected investment of about ₹30.5 lakh crore in India between 2024 and 2030, for renewable energy sector underscores its strategic focus on energy growth and development. We are confident that this substantial investment will bolster infrastructure, enhance energy security, and drive sustainable progress across the nation.” He went on to state that India’s renewable energy target of 500 GW by 2030 is ambitious and aligns with global climate goals. As we transition to renewable energy, the sector will experience unprecedented growth, driven by new technologies, grid modernisation, smart infrastructure, and research and development breakthroughs.

Riju Jhunjhunwala, CMD RSWM Ltd & MD Bhilwara Energy Ltd, said, “The Union Budget 2024 presents a holistic approach to India’s economic growth, with a strong emphasis on manufacturing, energy, and sustainability. The employment incentives for the manufacturing sector are poised to stimulate job creation and strengthen our workforce. The focus on nuclear energy development and indigenous thermal power technologies demonstrates a commitment to energy security and efficiency. The budget’s sustainability measures, particularly the rooftop solar scheme, are set to transform energy consumption at both household and industrial levels. Overall, this budget lays a solid foundation for industrial growth, aligning with our vision of a sustainable and innovative future for India.”

Kishan Jain, Director, Goldmedal Electricals affirmed, “We extend our sincere gratitude to the Honourable Finance Minister for presenting the forward-looking Budget 2024. The focus on bolstering manufacturing practices through targeted incentives and policy reforms represents a significant step towards fostering growth and innovation within the consumer electronics sector. This budget not only addresses the prevailing industry challenges but also lays a solid foundation for a more prosperous and sustainable future in manufacturing. With the government’s strategic vision and commitment to fostering a conducive environment for business development, we are optimistic about the promising opportunities this budget will offer to both the sector and the broader economy. We look forward to contributing to and benefiting from this transformative journey.”

Prashant Mathur, CEO Saatvik Energy said, “The FY25 budget is pragmatic and progressive with adequate focus on energy transition, which is crucial to build a sustainable future. The response to the PM Surya Ghar Muft Bijli Yojana is heartening and we are confident that solar rooftops will be adopted on a mass scale in the coming years. The budget has further strengthened the domestic solar manufacturing industry by expanding the list of exempted capital goods for use in production of solar cells and panels. The budget’s proposal to not extend the exemption of customs duties for solar glass and tinned copper interconnect will also give a boost to the domestic solar equipment ecosystem. Importantly, the government’s proposal to do away with customs duty on 25 critical minerals will promote manufacturing in emerging segments like battery storage.”

Pratik Agarwal, Chairman, Serentica Renewables stated, “The budget’s emphasis on energy transition and decarbonisation of hard-to-abate sectors is commendable. Emission goals for hard-to-abate industries, and promoting pumped storage projects, will catalyse this transition. Implementation here will be the key to realising the full potential of this opportunity.”

Mahesh Girdhar, Managing Director and CEO, EverEnviro Resource Management opined, “The Union Budget emphasises productivity and resilience in natural farming as one of its nine priorities, with a significant allocation of ₹1.52 lakh crores towards agriculture and allied sectors. Further the establishment of 10,000 need-based bio-input resource centres, and the initiation of 1 crore farmers into Natural Farming, further enhance prospects of sustainable agricultural development across the nation. He further said that Compressed Biogas (CBG) plants produce Fermented Organic Manure (FOM), a vital component for soil health that can be used as an eco-friendly fertiliser to promote regenerative agriculture. This renewed focus of the Government of India on developing the agro-industry presents a remarkable opportunity for all players, including us, to strengthen our contribution to India’s economic development

“At EverEnviro, we welcome the special focus on sustainable and resilient agriculture and energy security. The budget presents a promising roadmap towards available, accessible, and affordable energy transition. These initiatives will greatly boost the Compressed Biogas sector’s growth, allowing us to play a pivotal role in driving India towards a more sustainable future,” he added.

Satish Kumar, President & Executive Director, AEEE said, “The FY25 budget reflects a decisive commitment to sustainability and decarbonisation. Key initiatives such as energy efficiency investments in MSMEs to enhance their competitiveness will be a game-changer, empowering small and traditional industries to embrace green transitions. The strategic shift for ‘hard to abate’ industries from just energy efficiency implementation to GHG emission reduction targets is a forward-thinking move that aligns with global climate goals. We are eagerly anticipating the upcoming policy document on appropriate energy transition pathways, which promises to balance the imperatives of employment, growth, and environmental sustainability. The new centrally sponsored scheme for skilling programmes will also equip our workforce with the necessary tools to drive these initiatives forward. These measures are integral to achieving India’s climate goals, perfectly aligning with AEEE’s mission to enable equitable energy transition and achieve a climate resilient and energy secure future.“

Rajeev Kashyap, Senior VP and General Manager Nextracker- Middle East, Africa & India affirms, “The budget charts a strategic path for India’s growth over the next five years, with a strong emphasis on green energy and infrastructure development, supported by an allocation of  ₹ 19,100 crore to the Ministry of New and Renewable Energy. This approach lays a solid foundation for a resilient and sustainable energy future. We commend the government’s ongoing commitment to advancing the solar sector through support for domestic manufacturing and innovation. The focus on expanding solar capabilities highlights a clear dedication to enhancing India’s leadership in renewable energy.”

Raman Bhatia, Founder & MD, Servotech Power Systems stated, “The Union Budget 2024 was built on the foundation of Viksit Bharat. A strong focus was put on solar energy. The remarkable achievement of PM Surya Ghar Muft Bijli Yojana with 1.28 crore registrations and 14 lakh applications reflected the growing public awareness and alignment with the government’s vision of a solar-powered India. As a leading solar panel manufacturer, this motivates us to make solar energy more adoptable, affordable, and accessible nationwide. The exemption of customs duty on lithium, a crucial mineral used in the renewable energy sector, will reduce costs, making lithium-based technologies more affordable. The pumped storage policy which includes pumped storage projects for electricity storage will facilitate the smooth integration of the growing share of renewable energy into the overall energy mix, paving the way for a sustainable energy future. Imposing customs duty on the import of solar glass for solar cell and module production will promote domestic manufacturing and boost the economy.”

Gyanesh Chaudhary, CMD, Vikram Solar opined, “The Union Budget 2024 has positioned India as a frontrunner in the global solar energy landscape. By allocating a substantial Rs. 7,327 crores for solar projects and introducing initiatives like the PM Surya Ghar Muft Bijli Yojana, which aims to provide free electricity to one crore households, the government has demonstrated a strong commitment to clean energy. This budget is a catalyst for the growth of the Indian solar industry, empowering millions of households with access to affordable and clean electricity. Moreover, by supporting ancillary sectors like pump storage and creating a conducive environment for innovation through tax incentives for solar cell and panel manufacturing, the budget has laid a robust foundation for India’s energy transition.”

Meenu Singhal, Regional Managing Director, Socomec Innovative Power Solutions, Greater India emphasised , “Today’s budget announcement marks a pivotal moment for India with funding focus on 9 priorities including Productivity and resilience in Agriculture, Employment & Skilling, Human Resource Development and Social Justice, Manufacturing & Services, Urban Development, Energy Security, Infrastructure, Innovation, Research & Development and Next Generation Reforms generating ample opportunities for all.”

Amit Paithankar, Chief Executive Officer, Waaree Energies said, “The Union Budget 2024-25 is expected to mark as a transformative moment for India’s renewable energy sector, reaffirming the government’s commitment to sustainability, energy security, and economic growth. The PM Surya Ghar Muft Bijli Yojana is an initiative which is not only revolutionising energy accessibility and affordability but also expected to generate substantial employment opportunities in solar panel manufacturing and maintenance while demonstrating the possible tangible benefits of renewable energy adoption. On the other hand, we eagerly wait to witness the announcement of the policy document on energy transition pathways which is expected to be a significant catalyst in the energy sector.”

Venkatesh R, Managing Director & Director of Energy Business- Wartsila India shared his perspective saying,“The Union Budget 2024 presents a promising roadmap towards the Government’s strategy to sustain high and more resource-efficient economic growth, along with energy security in terms of availability, accessibility and affordability. The emphasis on clean and sustainable energy sources is commendable. With this budget the government has chartered a path that heavily endorses renewable energy integrations. It will also bring out a policy document on appropriate energy transition pathways that balance the imperatives of employment, growth and environmental sustainability. These initiatives align with our vision of a sustainable energy future and provide ample opportunities for innovation and collaboration.”

Rahul Raizada, Partner & Energy Transition CoE Leader- PwC India, stated, “The budget reflects a continued focus on energy security and energy transition. It balances energy needs with an emphasis on nuclear, solar and pumped storage along with cleaner thermals through ultra-supercritical technologies. The announcement on setting emission targets for hard-to-abate sectors and moving them from PAT to the Indian carbon market will help foster vibrancy in carbon markets, and can finance energy transition.”

Sambitosh Mohapatra, Partner & Leader – ESG, Climate and Energy, PwC India opined, “The budget focuses on all elements of the energy value chain – managing and reducing demand, encouraging resource efficiency, enhancing energy security at a national and citizen level, driving energy transition, and indigenizing technologies like nuclear reactors. Most importantly, it focuses on streamlining climate finance and stimulating carbon markets. At the core of the budget is the respite given to the common man’s energy bills through the solar rooftop mission.”

Ashish P. Dhakan, MD & CEO, Prama Hikvision India Private Limited, stated that the Union Budget 2024-2025 has made significant allocations for electronics manufacturing as well as the infrastructure sector, and it will speed up the economic growth. “The budget estimate of 2024-25 for the Ministry of Electronics and Information Technology (MeitY), saw a 52 per cent increase in its allocation of ₹ 21,936.9 crore, compared to the revised estimate of 2023-24, at ₹ 14,421.25 crore. The Electronics and Infrastructure sectors got a big boost in the Union Budget; these initiatives will help the electronics security industry to grow faster,” he said.

Moving ahead with the energy security initiatives the post-budget reactions reflect a shared optimism and determination adding to the nation building.