Union Budget 2023: FM rolls out green growth initiatives

Finance Minister proposes a Rs 35,000 crore commitment for key capital investments in energy transition and net zero goals, as well as energy security.

Finance Minister Nirmala Sitharaman, in her address to the parliament, outlined green energy as one of the key focus areas of the government, while unveiling Budget 2023. Energy transformation, net-zero goals, and energy security are all areas where the Finance Minister has recommended allocating a total of Rs 35,000 crore in the form of priority capital investments.

“Our target is to reach an annual production of 5 MMY by 2030. This budget provides for Rs 35,000 crore in capital investment towards energy transition, net zero objectives, and energy security by the Ministry of Petroleum and Natural Gas,” the FM declared.

As part of its ‘green growth’ strategy, the Indian government will encourage the adoption of green fuel, energy, and building practices to reduce the nation’s carbon footprint, and pave the way for environmentally friendly solutions.

“We are implementing many programmes for green growth across various economic sectors. They will help reduce carbon intensity and create green jobs,” the FM said.

The FM also outlined seven main priorities, referred to as “saptrishi,” for fuel-sustainable and environmentally friendly economic development:

1. Inclusive development
2. Youth power
3. Green growth
4. Infrastructure and investment
5. Reaching the last mile
6. Unleashing the potential
7. Launching a digital platform

The initiative is a part of the government’s long-term plan towards building a cleaner and prosperous future for all Indians, and mitigating the ongoing climate crisis, according to Sitharaman.

The newly launched National Green Hydrogen Mission, with an outlay of Rs 19,700 crore, will help transform the economy to one with low carbon intensity and decrease the reliance on fossil fuel imports. The government will provide feasibility gap financing for 4000 MWh battery energy storage systems.

A comprehensive structure for pumped storage projects is set to be conceived. Nirmala Sitharaman suggested that India is moving firmly in the right direction towards achieving the net zero target.

Disclaimer: The views expressed in this article are those of the author and do not necessarily reflect the views of ET Edge Insights, its management, or its members

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