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“The Union Budget 2025 builds on the strong foundation built by its predecessors for accelerating India’s energy transition, boosting domestic manufacturing capabilities, and streamlining regulatory policies to promote ease of doing business. Further push to the Revamped Distribution Sector Scheme and the proposed incentives for States to enhance electricity distribution and intrastate transmission capacity will boost the financial health and operational efficiency of discoms. The incentive of additional borrowing allowance will encourage States to ensure rapid and efficient implementation of these projects.
Building indigenous manufacturing capabilities in key sectors is crucial for energy security. We welcome the announcement of the National Manufacturing Mission under the ‘Make-in-India’ initiative to support the manufacturing of clean tech, EV batteries, motors, wind turbines, grid-scale batteries, and solar panels. The exemption of Li-ion batteries and critical minerals from basic customs duty will help in ensuring that India’s energy transition is not impeded in the meantime.
India’s admirable infrastructure growth from recent years will get a further boost and clearer long-term direction with the proposal to create three-year pipelines of PPP-mode projects with an outlay of ?1.5 lakh crore for 50-year interest-free loans. Additionally, the setting up of a High-Level Committee for Regulatory Reforms to review all non-financial sector regulations, certifications, licenses, and permissions, will strengthen investments in the power sector and accelerate the country’s transition to low-carbon energy solutions. We commend and welcome the Union Budget 2025 as it will drive the power sector towards a sustainable and energy secure future.”
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