Finance Minister Unveils Green Growth and Renewable Energy Initiatives in Interim Budget 2024-25

New Delhi:  Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman, articulated the government’s commitment to comprehensive and inclusive development by announcing a series of measures to promote green growth and renewable energy in the Interim Budget 2024-25 presented in Parliament today.

Underlining the government’s vision for all-round development, Minister Sitharaman introduced initiatives focusing on rooftop solarization and muftbijli (free electricity) to drive green energy adoption. Through this program, one crore households are expected to benefit by receiving up to 300 units of free electricity monthly. The scheme aligns with the Prime Minister’s commitment on the historic day of the consecration of the Ram Mandir in Ayodhya. The anticipated benefits include significant annual savings for households, electric vehicle charging infrastructure, entrepreneurship opportunities, and employment generation for youth with technical skills in manufacturing, installation, and maintenance.

To fulfill the commitment of achieving ‘net-zero’ by 2070, the Finance Minister proposed several measures:

1. Viability gap funding for harnessing offshore wind energy potential with an initial capacity of one gigawatt.
2. Establishment of coal gasification and liquefaction capacity of 100 million metric tons by 2030, aiming to reduce imports of natural gas, methanol, and ammonia.
3. Phased mandatory blending of Compressed Bio Gas (CBG) in Compressed Natural Gas (CNG) for transport and Piped Natural Gas (PNG) for domestic purposes.
4. Financial assistance for the procurement of biomass aggregation machinery to support collection.

In the electric vehicle (EV) ecosystem, the government plans to expand and strengthen the infrastructure by supporting manufacturing and charging facilities. The Finance Minister emphasized the encouragement of greater adoption of e-buses for public transport networks through a payment security mechanism.

For promoting green growth, Minister Sitharaman introduced a new scheme focused on bio-manufacturing and bio-foundry. This initiative aims to provide eco-friendly alternatives such as biodegradable polymers, bio-plastics, bio-pharmaceuticals, and bio-agri-inputs. The scheme envisions transforming the current manufacturing paradigm into one based on regenerative principles.

The announcements made in the Interim Budget underscore the government’s commitment to sustainable and green development, fostering a transition towards cleaner energy sources and eco-friendly manufacturing practices. These initiatives are poised to create a positive impact on the environment, while also contributing to economic growth and job creation in the emerging green sectors.