Summary of announcements on sustainability in the Union Budget 2024-25
Nuclear energy to drive India’s new power mix
Union Budget 2024-25 sets the stage for a sustainable energy transformation. Key initiatives include partnerships for nuclear energy advancements, the PM Surya Ghar Muft Bijli Yojana for household solar power, and a new Pumped Storage Policy for renewable integration. Public sector collaborations will drive advanced power plants, and a Critical Mineral Mission will secure essential resources. This comprehensive strategy aims to balance growth, employment, and environmental sustainability, ensuring a resilient energy for future.
Budget almost halves FAME allocation, no GST relief for EV industry
The FAME scheme allocation to Rs 2,671.33 crore from Rs 4,807.40 crore. While FAME III remains unannounced, the budget supports the EV industry with customs duty exemptions on lithium and job creation initiatives, though GST relief was not addressed.
Cuts on customs duty on minerals critical for energy transition
Customs duty cuts on minerals for energy transition and initiatives for solar panels and Bharat Small Reactors. Biogas and AUSC thermal plants by NTPC-BHEL were highlighted, along with energy efficiency measures and carbon market transitions. Policies aim to balance employment, growth, and sustainability while boosting domestic solar glass manufacturing.
After bumper profits, govt scraps Rs 30,000 cr capital support to oil cos
Finance Minister Nirmala Sitharaman cancelled a Rs 30,000 crore equity infusion for Indian Oil, Bharat Petroleum, and Hindustan Petroleum due to record FY24 profits. Interim support was Rs 15,000 crore. Prices remained low April-September 2022, with provided LPG subsidies and resisted daily revisions. ONGC, GAIL aim for net-zero emissions. FY23 losses were driven by the oil crisis.
800-MW power plant based on advanced ultra super critical tech
800-MW advanced ultra supercritical power plant via a joint venture between NTPC Ltd and Bharat Heavy Electricals Ltd. The government will provide fiscal support, promoting indigenous technology and high-grade steel production, boosting thermal power capacity, and addressing equipment availability issues.
Govt retains 14 pc rise in capital investment of Rs 67,000 cr by 8 power PSUs in FY25
The government has announced a significant increase in capital investments by eight state-owned power companies for the upcoming fiscal year. Various companies like Power Grid Corporation, NTPC Ltd, and NHPC Ltd are set to boost their investments compared to previous years.
Rs 6,250 cr allocated to PM Suryaghar Muft Bijli Yojana
The scheme PM Suryaghar Muft Bijli Yojana has been launched by the government. The existing solar power grid scheme is proposed to be subsumed under this scheme along with the remaining financial outlay and liabilities. An amount of Rs 6,250 crore is allotted in this scheme for BE 2024-2025.
Policy framework for climate finance and minerals
To improve climate action funding, a new taxonomy for climate finance will be introduced, and customs duties will be exempted for 25 critical minerals, with a reduction in BCD for two of them.
Solar energy’s allocation rises by massive 110 per cent
FM proposed to expand the list of exempted capital goods for use in the manufacture of solar cells and panels in the country. In view of sufficient domestic manufacturing capacity of solar glass and tinned copper interconnect, Sitharaman proposed not to extend the exemption of customs duties provided to them.
Budgetary allocation of Rs 10,000 crore to solar power grid projects in FY2025 BE, a whopping 110 per cent increase from Rs 4,757 crore allocated in FY2024 Revised Estimates.
Support for traditional industries
The government will conduct energy audits in 60 clusters of traditional industries, such as brass and ceramics, to assist in transitioning to cleaner energy sources. Additional support is planned for another 100 clusters in the future.
Strategic roadmap for heavy industries
A roadmap will be formulated to transition 'hard to abate' industries from energy efficiency targets to emission targets, involving new regulations and transitioning to the Indian Carbon Market.
A helping hand to MSMEs
A new credit guarantee scheme aimed at facilitating term loans for Micro, Small, and Medium Enterprises (MSMEs) on Tuesday, while presenting the full budget for 2024-25. The scheme will help manage credit risks for these enterprises through a self-financing guarantee fund providing coverage of up to Rs 100 crore per applicant.
The scheme will operate on the cooling of credit risks of such MSMEs. A self-financing guarantee fund will provide to each applicant cover of up to Rs 100 crore while the loan amount may be larger.
Edible oil industry seeks higher customs duty to motivate farmers
Industry experts advocate for higher customs duty on imported edible oils to enhance domestic oil seed production. The Union Budget's allocation towards agriculture and rural development receives positive feedback for promoting sustainability and innovation in the sector.
Shares of shrimp, seafood makers in heavy demand after allocation of budget
Producers and exporters of seafood products saw a surge in stock prices following Finance Minister Nirmala Sitharaman's announcement of government support for the shrimp farming and marketing sector. The Union Budget for financial year 2024-25 revealed a reduction in basic customs duty on shrimp to 5%.
New plan for major agriculture upgrade
New 109 high-yielding and climate-resilient varieties of 32 field and cultivation crops will be released for farmers in this financial year.
The Budget laid out 9 priorities for the year ahead, one of them being productivity & resilience in agriculture.
The govt will undertake comprehensive review of research to develop climate resilient seeds.
To enhance the supply chain of vegetables, the budget proposed the development of large-scale clusters for vegetable production near major consumption centres.
A three-year plan to facilitate the digital public infrastructure for agriculture, aiming to cover farmers and their lands comprehensively.
Digital crop survey for Kharif crops will be conducted in 400 districts this year, integrating the details of six crore farmers and their lands into farmer and land registries. Recognizing the potential of aquaculture, the budget provides financial support for setting up a network of nucleus breeding centers for shrimp broodstock.
A new national cooperation policy will be introduced to ensure the systematic, orderly, and all-round development of the cooperative sector.
