What The Green Industries Said About Budget 2024?

Hours after Finance Minister Nirmala Sitharaman announced the Union Budget 2024, the industry leaders also reacted to the budget announcements. Many of them talked about the benefits and challenges of the industry in the light of the announcements. The minister, in her budget speech talked about imposing Customs Duty on solar glass imports and include more exempted capital goods for the production of solar cells and solar modules in India.

Following are some of the views expressed by the industry leaders from India’s green industries.

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“The Finance Minister’s announcement that the Government will release a policy document on India’s energy transition pathway and policy on pumped storage will provide much needed long term clarity for investments across the value chain. The continuation of the PM Surya Ghar Muft Bijli scheme, on the back of an overwhelming response for its subscription, underscores the growing appetite for clean energy solutions among citizens, aligning perfectly with our national sustainability goals. Additionally, with nuclear energy poised to be a cornerstone of our energy mix, and innovative nuclear technologies being developed in partnership with the private sector, the future looks promising.”

Sumant Sinha, Founder, Chairman & CEO, ReNew

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“The impetus on PM Surya Ghar Muft Bijli Yojana will help fast track nationwide adoption of roof top solar, helping expand our overall RE capacity. The proposed investment in Pumped Storage programmes is a much-needed step that will ensure smoother integration of growing RE, leading to more reliable supply of green power and grid stability. The focus on transitioning hard to abate industries to greener alternatives will catalyze the C&I sector’s journey towards net zero. Introduction of a taxonomy for climate finance will help attract much needed capital for boosting climate resilience. Finally, the expanded duty exemptions will also help propel the RE sector ahead. This is a positive budget for the sector that should help continue the momentum of India’s energy transition and Hero Future Energies remains committed to partnering with the Government in enabling this mission.”

Srivatsan Iyer, Global CEO, Hero Future Energies

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“The announcement to fully exempt 25 critical minerals and reduce BCD on two of them will assist the renewable energy sector, since it shall provide a major fillip to the processing and refining of such minerals and help secure their availability. The proposed policy to promote pumped storage projects for electricity storage will help facilitate smooth integration of growing renewable energy share thereby reducing challenges posed by its variable and intermittent nature. Expansion of India’s renewable energy infrastructure – both greenfield and brownfield will require skilled workforce to ensure efficient project execution, while reducing cost and time overruns. We therefore welcome the government’s focus towards upskilling 20 lakh youth over a 5-year period and upgrading 1000 Industrial Training Institutes.”

Amit Jain, Global Chief Executive Officer – Sterling and Wilson Renewable Energy Group

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The PM Surya Ghar Muft Bijli Yojana is a revolutionary initiative that has garnered an overwhelming response, with over 1.28 crore registrations and 14 lakh applications. This sets a strong precedent for sustainable energy adoption in India. The Government’s proposal to expand the list of exempted capital goods used in the manufacturing of solar panels is a significant step towards promoting solar energy and driving the energy transition. Aligning with India’s commitment to achieving net zero, we will continue evolving and innovating our efforts towards the adoption of rooftop solar since solar energy holds the potential for contributing to a better planet and a sustainable future.”

Preeti Bajaj, MD & CEO, Luminous Power Technologies

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“The Union Budget 2024 has positioned India as a frontrunner in the global solar energy landscape. By allocating a substantial Rs. 7,327 crore for solar projects and introducing initiatives like the PM Surya Ghar Muft Bijli Yojana, which aims to provide free electricity to one crore households, the government has demonstrated a strong commitment to clean energy. This budget is a catalyst for the growth of the Indian solar industry, empowering millions of households with access to affordable and clean electricity. Moreover, by supporting ancillary sectors like pump storage and creating a conducive environment for innovation through tax incentives for solar cell and panel manufacturing, the budget has laid a robust foundation for India’s energy transition.”

Gyanesh Chaudhary, CMD, Vikram Solar Limited.

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“The Union Budget 2024 is a major milestone for the nation, fostering economic growth, infrastructure development, and energy independence. The PM Suryaghar Muft Bijli Yojana, aimed at installing rooftop solar panels in 1 crore households to provide 300 units of free electricity, is transformative in making sustainable energy accessible. This will boost solar adoption in the residential sector and drive economic growth. Special attention has been given to MSMEs and manufacturing. The support includes a Credit Guarantee Scheme, term loans for machinery, and technology financing packages. These measures will help MSMEs scale up and enhance competitiveness.”

Sameer Gupta, Chairman & Managing Director of Jakson Group

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“One of the most notable measures is the extension of tax incentives for renewable energy investments, including the Investment Tax Credit (ITC), which allows manufacturers and consumers to deduct a significant percentage of the cost of solar installations from their federal taxes. This provision not only stimulates demand for solar panels but also encourages manufacturers to ramp up production and innovate in technology. Additionally, increased federal funding for research and development in renewable energy technologies is set to enhance the competitiveness of domestic solar panel manufacturers.”

Shravan Gupta, MD, Cosmic PV Power

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“The FY25 budget is pragmatic and progressive with adequate focus on energy transition, which is crucial to build a sustainable future. The response to the PM Surya Ghar Muft Bijli Yojana is heartening and we are confident that solar rooftops will be adopted on a mass scale in the coming years. The budget has further strengthened the domestic solar manufacturing industry by expanding the list of exempted capital goods for use in production of solar cells and panels. The budget’s proposal to not extend the exemption of customs duties for solar glass and tinned copper interconnect will also give a boost to domestic solar equipment ecosystem. Importantly, the government’s proposal to do away with customs duty on 25 critical minerals will promote manufacturing in emerging segments like battery storage.”

Prashant Mathur, CEO Saatvik Energy Pvt. Ltd
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“The budget’s emphasis on energy transition and decarbonisation of hard-to-abate sectors is commendable. Emission goals for hard-to-abate industries, and promoting pumped storage projects, will catalyse this transition. Implementation here will be the key to realising the full potential of this opportunity.”

Pratik Agarwal, Chairman, Serentica
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“The Union Budget 2024 is a forward-looking and progressive plan. The government’s focus on climate risk mitigation, women’s workforce development, and energy security positions India as a leader in sustainable development. Exempting capital goods for solar manufacturing will reduce costs and boost domestic production. The PM Suryaghar Muft Bijli Yojana, offering up to 300 units of free electricity monthly to 1 crore households, will enhance rooftop solar adoption. Goldi Solar applauds these efforts towards a clean energy ecosystem and the ‘Make in India’ vision.”

Capt Ishver Dholakiya, MD & Founder, Goldi Solar

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“While appreciating the budgetary support for the renewable energy sector, the industry expects that some of the critical demands for promoting renewable energy in the county should be met through suitable amendments in the budgetary provisions: Classifying renewable industry as a part of ‘Priority Sector lending’ and helping make available project finance at very competitive rates for RE projects, rationalization of indirect tax-GST rates on turbines and modules to be 5% each against existing 12%, exemption of ALMM for Corporate &Industrial projects and need for greater push on developing & promoting in house R & D facilities for development of latest technologies for cell, module manufacturing and their backward integration. ”

SK Gupta, CFO, AMPIN Energy Transition

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“Axitec Energy welcomes the Indian government’s recent move to provide import duty exemptions for up to 6 GW of photovoltaic (PV) projects. This exemption is a crucial step in making solar projects more economically viable by alleviating some of the financial burdens imposed by the Basic Customs Duty (BCD). With the current BCD rates set at 25% for solar cells and 40% for solar modules, this exemption helps bridge the gap until domestic manufacturing can fully meet demand. Duty will be nill on Solar manufacturing equipment which was 7% earlier will help reduce the price. Additionally, Now the duty on Solar Glass & Interconnector will be 10% and 5% respectively.”

Vipin Tiwari, Corporate Strategy Manager, AXITEC Energy India 

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“This budget is a decisive step towards India’s energy independence and a cleaner, greener future, strategically advancing the goal of ‘Viksit Bharat’. By prioritising energy security and announcing a dedicated policy on energy transition, the government has shown a clear commitment to achieving our Nationally Determined Contributions (NDC) goals. The focus on job creation, sustainability, and promoting renewable energy is commendable. Solar energy will be key in achieving our energy transition goals, with initiatives like the PM Surya Ghar Muft Bijli Yojana not only enabling energy access to households but also reducing pressures on energy grids. Additionally, financial assistance to MSMEs for transitioning to clean energy and implementing energy efficiency measures is a visionary approach. This budget lays a strong foundation for bridging the energy availability gap and advancing energy sustainability”.

Ashish Bhandari, MD & CEO, Thermax Limited

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“The budget can be termed as progressive aimed at bolstering the solar sector’s growth and sustainability and we welcome the budget proposals. The government’s commitment to increasing investment in renewable energy was evident through significant allocations for solar infrastructure development, and energy storage solutions. Notably, the custom duty exemption on capital goods for solar cells and panels stands out as a pivotal move. This exemption is expected to lower production costs, making solar energy more affordable and accessible. More than 1.3 Cr registrations and more than 14 lakhs applications under PM Suryaghar initiative is poised to accelerate rooftop solar installations, enhancing energy security and supporting the energy transition. Additionally, the establishment of a carbon market will incentivize reduced emissions, aligning with India’s climate goals. These initiatives collectively reflect a forward-looking vision for a sustainable and self-reliant solar ecosystem in India.”

Gopal Kabra-Founder & MD- GK Energy

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“The reduction of Basic Customs Duty (BCD) and exemption of 25 essential minerals from custom charges is set to lower production costs for battery manufacturing and recycling, enhancing the affordability and accessibility of electric vehicles (EVs) in India. The strategic move will significantly impact India’s EV market by lowering production costs, enhancing competitiveness, supporting domestic manufacturing, encouraging innovation, improving supply chain resilience, and promoting environmental sustainability. The budget aims to support the ambitious goal of achieving 30% electrification of the vehicle fleet by 2030, bolstered by initiatives like the Production Linked Incentive (PLI) scheme for urban mining in future, expected to expand recycling capacity to process 295,000 metric tons of dead batteries annually, generating significant employment and forex savings estimated at INR 31,835 crore by 2030.”

Utkarsh Singh, Co-Founder & CEO, BatX Energies

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“The proposal of industrial parks and road connectivity projects, including the Rs 26,000 crore investment in road infrastructure, will go a long way towards achieving the vision of Viksit Bharat. GreenCell Mobility is optimistic about the positive ripple effect these initiatives will have on the economy. Improved road infrastructure will not only boost economic growth but also enhance the quality of life for millions of Indians. These measures will facilitate easier commutes, reduce travel times, and support the growth of urban and semi-urban areas. The creation of a climate finance taxonomy will boost capital availability for climate adaptation and mitigation. This initiative will help India to meet its climate commitments and fast track green transition, paving the way for a more sustainable future.”

Devndra Chawla, MD & CEO, GreenCell Mobility 

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“The interim budget’s financial assistance has significantly benefited the biofuel industry by simplifying the complex biofuel supply chain and generating increased interest in the sector. This budget emphasizes India’s energy mix, focusing on other clean energy sources, which highlights the government’s dedication to environmental sustainability. If appropriate regulations for transitioning the hard-to-abate sectors are outlined, we can anticipate substantial governmental support to solidify our energy transition efforts. Additionally, the policies focusing on rooftop solar, nuclear R&D, and AUSE technology in thermal power plants demonstrate India’s unwavering commitment to energy independence. The energy transition is set to play a crucial role in our nation’s progress.”

Kishan Karunakaran, CEO, Buyofuel

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“Finance Minister Nirmala Sitharaman’s announcement of the Critical Mineral Mission in the Budget 2024 is a groundbreaking move towards ensuring India’s self-reliance in critical minerals essential for clean energy and technological advancements. The mission’s focus on technology development, skilled workforce training, an extended producer responsibility framework, and robust financing mechanisms will revolutionize sustainable mineral production and recycling. The reduction and exemption of customs duties on critical minerals such as lithium, cobalt, and rare earths will significantly boost domestic processing and refining capabilities, ensuring availability for use across sectors such as renewable energy, space, defense, and telecommunications.”

Anupam Kumar, Co-founder & CEO, MiniMines

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“The recent budget sets a transformative agenda for India’s future, emphasizing green skill development and sustainability. The Finance Minister announced a forthcoming policy document on energy transition pathways that will focus on employment and sustainability, particularly within the solar and wind energy sectors. Central to this initiative is the PM Surya Ghar Muft Bijli Yojana, which aims to install rooftop solar plants and provide free electricity up to 300 units per month to 1 crore households, already attracting 1.28 crore registrations and 14 lakh applications. The budget ensures that the workforce is prepared for the renewable energy sector with training programs designed to equip individuals with the skills to install, maintain, and innovate in solar and wind technologies, creating numerous job opportunities.”

Sumit Kumar, Chief Strategy Officer, TeamLease Degree Apprenticeship

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“The Finance Minister’s announcement of a forthcoming policy document on energy transition pathways is a significant step towards a greener future. The introduction of the PM Surya Ghar Muft Bijli Yojana is a transformative initiative while investing in rooftop solar systems representing a significant financial commitment by the Government. With 1.28 crore registrations and 14 lakh applications already recorded, this achievement reflects a robust public response and sets a promising precedent for sustainable energy adoption in India. Aligning with India’s commitment to achieving net-zero emissions by 2070, Lord’s Mark Industries is contributing significantly to this vision, recently securing a project to set up 50 MW of grid-connected rooftop solar projects in Uttar Pradesh.”

Sachidanand Upadhyay, MD, Lord’s Mark Industries Limited

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“IESA Academy welcomes various initiatives announced in the Budget for Skilling and Employment. The four-year PF support is a good move to benefit new manufacturing facilities. IESA Academy also welcomes the announcement of “5 schemes and initiatives “to facilitate employment, skilling and other opportunities for 4.1 crore youth over 5 years with a central outlay of Rs 2 lakh crores”. Over 1000 industrial training institutes with course content aligned to industry and emerging needs were a demand of today’s youth. As India’s Clean Tech and Energy Storage sector is gradually becoming the biggest employment generation sector, the announcement of a scheme for internships in the top 500 companies to 1 crore youth will play a vital role in empowering the nation’s youth.”

Rahul Walawalkar, President of India Energy Storage Alliance (IESA)

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“The budget’s focus on measures on green energy continues to reinforce the commitment towards achieving energy transition in the long run. The increased allocation to the solar power sector, including the promotion of the rooftop solar scheme, will aid the renewable capacity addition in the country. Further, the measures to promote the availability of critical minerals are expected to support the development of battery energy storage projects and reduce the cost of storage in the long run. This, along with the policy to promote the development of pumped storage projects, would facilitate the integration of renewables with the grid. However, timely implementation of policy measures remains key.”

Girishkumar Kadam, Sr Vice President & Group Head – Corporate Ratings, ICRA Ltd

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“Recognising the importance of the value chain to boost domestic manufacturing, the government has reduced custom duties on solar panels and cells, but, on the other hand, increased it for solar glass and tinned copper interconnect. How this will impact the overall price needs to be seen. Further, the government has announced the setting up of a critical mineral mission for domestic production, recycling and overseas acquisition. The custom duties have also been exempted for the same, thereby resolving an important part of the puzzle as India will take time to explore and mine some of these minerals which are essential for energy transition. The industry was expecting a GST cut on wind, battery storage, EVs and charging stations, which has not been factored now, but there will be a meeting in the next few weeks to discuss tax rationalisation on certain components. Industry is hopeful that their demand will be taken care of by the GST council.”

Vibhuti Garg, Director – South Asia, Institute for Energy Economics and Financial Analysis (IEEFA)