Union Budget 2025-26: ₹26,549 Crore Allocated to MNRE to Power India’s Green Future! – EQ
In Short : The Union Budget for 2025-26 has allocated ₹26,549 crore to the Ministry of New and Renewable Energy (MNRE) to boost India’s green future. This funding will accelerate the development of renewable energy projects, including solar, wind, and green hydrogen. It aims to enhance energy security, create jobs, and help India achieve its ambitious renewable energy and climate goals.
In Detail : The Indian government is powering up the solar energy sector! The Union Budget 2025-26 allocates ₹26,549.38 crore to the Ministry of New & Renewable Energy (MNRE)—a massive 53.48% jump from last year’s revised ₹17,298.44 crore.
Moreover, the PM Surya Ghar Muft Bijli Yojana has received a significant boost, with ₹20,000 crore allocated in Budget 2025-26—nearly double last year’s revised ₹11,100 crore. The government remains confident of achieving its 10 million household target by 2026-27, expecting installation speeds to pick up as bottlenecks are resolved.
The PM-KUSUM Scheme, which aims to ensure energy security for farmers, has been allocated ₹2,600 crore for 2025-26, a 3% increase from last year’s ₹2,525 crore.
The basic customs duty (BCD) on solar cell imports has been reduced from 25% to 20%, but an agriculture infrastructure and development cess (AIDC) of 7.5% has been levied on these against collection of social welfare surcharge at 2.5% in the previous duty regime. Similarly, solar module imports now attract a reduced customs duty of 20% against 40% earlier, but an additional AIDC of 20% has been levied against 4% SWS in the previous duty regime.
The Finance Minister has announced a National Manufacturing Mission to strengthen Make in India, providing policy support, execution roadmaps, and a governance framework for industries of all sizes. The mission will also boost clean tech manufacturing, enhancing domestic value addition and strengthening the ecosystem for solar PV cells, EV batteries, motors & controllers, electrolyzers, wind turbines, high-voltage transmission equipment, and grid-scale batteries.
