The Hon’ble Finance Minister on 01st February, 2024, delivered the interim budget at the Parliament for the year 2024-25 . The budget included a section for introducing new reforms for the Energy Sector for promotion of sustainable energy practices and offering financial relief to households, aligning with the government’s commitment to fostering green and cost-effective solutions for citizens.
The key highlights which were observed for the energy sector were:
- Rooftop Solar Projects
One crore households will be enabled to obtain up to 300 units free electricity every month through rooftop solar projects. This is expected to generate the following outcomes:
- Savings of Rs. 15-18 thousand annually for households
- Charging of electric vehicles
- Business opportunities for vendors for supply and installation
- Employment opportunities for the youth with technical skills in manufacturing, installation and maintenance
- Green Energy Projects
The budget also introduced a new commitment for ‘net-zero’ by 2070. To achieve this the following measures will be undertaken:
- Harnessing offshore wind energy potential for initial capacity of one giga-watt through viability gap funding
- Establishing a 100 MT coal gasification and liquefaction capacity by 2030 aimed at reduction of natural gas, methanol, and ammonia imports.
- Mandatory blending of compressed biogas (CBG) into both compressed natural gas (CNG) for transport and piped natural gas (PNG) for domestic use will be phased in.
- Financial assistance will be available for procuring biomass aggregation machinery to aid collection efforts.
3. Electric Vehicles Ecosystem
The support to manufacturing and charging infrastructure of electric vehicles will be enhanced. Moreover, e-buses for public transport networks will be encouraged through payment security mechanisms.
