26 Jul 2024
Finance Minister Nirmala Sitharaman unveiled a future-focused Union Budget 2024-25 on Tuesday, introducing sweeping reforms to drive India's energy sector towards unprecedented sustainability and efficiency. As the nation strides towards the ambitious 'Viksit Bharat' vision for 2047, the government has charted a path that heavily endorses both nuclear advancements and renewable energy integrations. Sitharaman said the government will bring out a policy document on appropriate energy transition pathways that balances the imperatives of employment, growth and environmental sustainability. The government will also formulate a roadmap for moving the hard-to-abate industries from energy efficiency targets to emission targets. "Appropriate regulations for the transition of these industries from the current Performance, Achieve and Trade (PAT) mode to the Indian carbon market mode will be put in place," she said in the budget speech. Central to the government’s overall energy transition strategy is the PM Surya Ghar Muft Bijli Yojana, a scheme designed to revolutionize household energy consumption across India. With over 1.28 crore registrations and 14 lakh applications already submitted, the program aims to equip 1 crore households with rooftop solar installations, offering up to 300 units of free electricity each month. "In line with the interim budget announcement, the PM Surya Ghar Muft Bijli Yojana has been launched to enable 1 crore households to obtain free electricity up to 300 units every month. The scheme has generated remarkable responses and we will further encourage it," declared the Finance Minister.
Enhancing the storage and integration of renewable energy, the government is set to introduce a robust Pumped Storage Policy (PSP). This initiative is poised to provide a large-scale solution for the storage of excess electricity, facilitating smoother integration of renewable sources into India’s energy mix. Jignesh Ghelani, Partner at Economic Laws Practice, commented on the policy, "This step will encourage electricity generation and distribution companies to opt for PSP, ensuring continuous power supplies and helping moderate prices.”
Sitharaman also said public sector giants NTPC Ltd and BHEL will launch a joint venture to set up a 800 MW commercial power plant based on Advanced Ultra Super Critical (AUSC) technology and the government will provide the necessary financial support for it.
As India prepares for a sustainable transformation, the Union Budget 2024-25 lays down a comprehensive framework that not only focuses on advancing energy production technologies but also ensures their integration into the economic and ecological frameworks of the nation, paving the way for a resilient and energy-secure future.
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