BUDGET: FM Announces Support For RTS, Offshore Wind and EV Manufacturing

Union Finance Minister Nirmala Sitharaman announced the Union Budget 2024 today. Speaking in Lok Sabha, the finance minister discussed the recently announced Pradhan Mantri (PM) Suryodaya Scheme. On January 22, PM Narendra Modi announced the connection of one crore households with rooftop solar. In her budget speech, the finance minister talked about the savings of the households and benefits from the ambitious project.

Sitharaman, in her Budget Speech said, ” Through rooftop solarization, one crore households will be enabled to obtain up to 300 units of free electricity every month. This scheme follows the resolve of the Hon’ble Prime Minister on the historic day of the consecration of Ram Mandir in Ayodhya,”. Interestingly that 300 units number seems to indicate the focus will be on 3kW and below, when it comes to rooftop solar size, considering how a typical 3kW system promises between 320-400 units per month.

She in her budget speech also added, “The following benefits are expected–1. Savings up to fifteen to eighteen thousand rupees annually for households from free solar electricity and selling the surplus to the distribution companies, 2. Charging of electric vehicles 3. Entrepreneurship opportunities for a large number of vendors for supply and installation 4. Employment opportunities for the youth with technical skills in manufacturing, installation and maintenance.” SaurEnergy has covered these benefits earlier 

During the Budget Session of the Parliament, Sitharaman also talked about budgetary support for the manufacturing of electric vehicles (EVs) for public transport, especially Electric buses. “Our Government will expand and strengthen the e-vehicle ecosystem by supporting manufacturing and charging infrastructure. Greater adoption of e-buses for public transport networks will be encouraged through payment security mechanism,” she said.

The Finance Minister in her budget speech also talked about the government’s plan for ‘net-zero’ by 2070. She said this would include a Viability gap funding for offshore wind energy. “Viability gap funding will be provided for harnessing offshore wind energy potential for the initial capacity of one giga-watt. Some other announcements from the Green Energy sector include–

• Coal gasification and liquefaction capacity of 100 MT will be set up by 2030. This will also help reduce imports of natural gas, methanol, and ammonia.
• Phased mandatory blending of compressed biogas (CBG) in compressed natural gas (CNG) for transport and piped natural gas (PNG) for domestic purposes will be mandated.
• *Financial assistance will be provided for the procurement of biomass aggregation machinery to support collection.