Rs 11,500 crore outlay: Budget 2024 adds spark to wind & solar energy, green hydrogen projects – EQ
In Short : The allocation of a Rs 11,500 crore outlay in the Budget 2024 adds momentum to wind and solar energy, as well as green hydrogen projects. This significant financial commitment indicates the government’s focus on advancing sustainable and renewable energy initiatives in India.
In Detail : Furthermore, the government has elevated the allocation for wind to Rs 930 crore, reflecting a 1.5% increase from the previous Rs 916 crore.
With an objective to boost the renewable sector and curb carbon emissions, the government, through the Interim Budget 2024, has proposed over Rs 11,500 crore combined funding for Solar Power (Grid), the National Green Hydrogen Mission and Wind Power (Grid) projects for the financial year ended March 2025.
The financial allocation for solar initiatives has seen a substantial rise to Rs 10,000 crore for the fiscal year 2024-25, marking a 110% increase from the revised estimates of Rs 4,757 crore. Similarly, the budgetary allocation for the National Green Hydrogen Mission has witnessed a five-fold (500%) surge, reaching Rs 600 crore for the fiscal year 2024-25.
Furthermore, the government has elevated the allocation for wind to Rs 930 crore, reflecting a 1.5% increase from the previous Rs 916 crore.
Aditya Damani, Founder and CEO, Credit Fair said, “The government’s thrust on rooftop solar, green energy research, Viability Gap Funding for wind energy projects, bio fuels, bio manufacturing, food processing industries, procurement and processing of agri-produces, MSMEs, and financial assistance to women Self-Help Groups will revitalize the country’s clean energy initiatives and unleash stellar economic growth in rural economy.”
“Higher capital expenditure, which envisages 3.4% of GDP, railway modernisation and economic corridors under the PM Gati Sakti Scheme, deeptech technology for defence sector, skill development, and air connectivity revolution by the Udan scheme will also help the country achieve its ambitious growth targets. In essence, the Interim Budget has two major themes: rural push and higher infrastructure investment,” Damani said.
Subahoo Chordia, President & Head – Real Assets, Edelweiss Alternatives said, “The budget is a further demonstration of the sustained government support to the infrastructure sector, evident in an increase of over 11% in allocation. Initiatives such as the development of multi-modal connectivity, a renewed emphasis on advancing solar and wind energy technologies, including offshore wind, and the improvement of railway infrastructure are poised to fuel economic growth. The backing of sustainable technologies, including electric vehicles and charging infrastructure, bodes well for a cleaner future. In all, the budget is expected to lead to a sustained growth of the economy.”
