Budget 2026 Unveils Major CCUS Drive with Tax Relief to Accelerate India’s Clean Technology Transition – EQ
In Short : In Budget 2026, the Finance Minister proposed a ₹20,000 crore push for Carbon Capture, Utilisation and Storage while announcing customs duty relief for batteries, solar, and nuclear technologies. The measures aim to accelerate clean technology adoption, strengthen domestic manufacturing, reduce emissions, and support India’s long-term strategy for sustainable industrial growth and energy security.
In Detail : The Union Budget 2026 has introduced a significant policy push for Carbon Capture, Utilisation and Storage, with a proposed allocation of ₹20,000 crore to support the development and deployment of this emerging technology. This move reflects India’s growing recognition of CCUS as a critical tool for reducing emissions from hard-to-abate industrial sectors.
CCUS is particularly important for industries such as steel, cement, power, and chemicals, where direct decarbonisation remains technologically challenging. By capturing carbon dioxide at the source and either storing it or reusing it in industrial processes, CCUS offers a pathway to maintain economic activity while lowering environmental impact.
The proposed funding is expected to support pilot projects, research and development, infrastructure creation, and commercial-scale deployment. It aims to build domestic expertise, reduce technology costs, and create an enabling ecosystem for CCUS adoption across multiple industrial clusters.
In addition to the CCUS push, the Budget has announced customs duty relief for key clean energy components, including batteries, solar equipment, and nuclear technologies. This policy measure is designed to lower input costs, improve affordability, and accelerate the adoption of advanced energy systems across the country.
Customs duty rationalisation is expected to benefit domestic manufacturers by improving access to critical raw materials and components. At the same time, it encourages global technology collaboration and strengthens supply chains for clean energy and low-carbon infrastructure.
The combined focus on CCUS and clean energy technologies reflects a broader shift in India’s climate strategy, where both emission reduction and energy transition are being pursued simultaneously. While renewables address future energy needs, CCUS helps manage emissions from existing industrial assets.
From an economic perspective, these measures are likely to stimulate investment in clean technology sectors and create new opportunities for innovation, manufacturing, and skilled employment. Emerging areas such as carbon management, advanced batteries, and nuclear systems can become new growth engines for the economy.
The Budget’s approach also strengthens India’s energy and industrial security by promoting self-reliance in strategic technologies. Reduced dependence on imports, coupled with domestic capability building, enhances resilience against global supply disruptions and geopolitical uncertainties.
Overall, the ₹20,000 crore CCUS push and customs duty relief announced in Budget 2026 signal a decisive move toward a technology-driven climate strategy. Together, these measures position India to balance economic growth with environmental responsibility, while building a future-ready, low-carbon industrial ecosystem.
