Quotes & Mentions

Budget may provide booster dose to meet climate goals

At a time when India is focusing on decarbonising its economy, industry is pitching for steps to encourage green mobility in the Budget, along with a transition towards the goals outlined by PM Narendra Modi as part of the United Nations COP26 climate agenda.

“The union Budget this year is a historic opportunity for the government to push forward the country’s clean energy agenda as never before. It is the need of the hour, especially if we are to install 450 GW of renewable capacity by 2030. This means we need to double our annual installation from around 16 GW currently to 30-40 GW,” said Sumant Sinha, chairman and CEO, ReNew Power , while pitching for aggressive promotion of battery storage and the green hydrogen initiative.

Modi had at COP26 in November last year committed to India reaching its non-fossil fuel energy capacity to 500 GW by 2030 and said 50% of the country’s electricity requirements will be from renewable energy. Besides, the PM also announced that the country would reduce emissions intensity of GDP by 45% by 2030 (from 2005 levels) and achieve ‘net zero’ emissions by 2070.

“Reduction in duties on storage batteries can bring their capital cost down by almost 30% and help the storage industry find its feet before manufacturing under the PLI scheme kicks in a few years later. Similarly for green hydrogen, a promotional framework in initial years via a mandate for users, viability gap funding, cess on gray hydrogen (similar to coal cess), and a reduction in taxes and duties for equipment, will help in cutting down emissions in hard-to-abate industries like fertilisers, steel, heavy transport, and chemicals,” Sinha suggested.

“Reduction in duties on storage batteries can bring their capital cost down by almost 30% and help the storage industry find its feet before manufacturing under the PLI scheme kicks in a few years later. Similarly for green hydrogen, a promotional framework in initial years via a mandate for users, viability gap funding, cess on gray hydrogen (similar to coal cess), and a reduction in taxes and duties for equipment, will help in cutting down emissions in hard-to-abate industries like fertilisers, steel, heavy transport, and chemicals,” Sinha suggested.

Based on a Mckinsey report, industry bodies have identified several issues, with charging stations being a key focus area — from identifying land to issues with power distribution companies, preferential parking and those related to tax.