Union Budget 2025-26: Power and Urban Development Sectors Set for Transformative Reforms, Says Manohar Lal

New Delhi: Union Minister for Power and Housing and Urban Affairs, Manohar Lal, today emphasized the government’s commitment to driving India’s growth with a focus on transformative reforms in the power sector and urban development as part of the Union Budget 2025-26. He highlighted that these reforms aim to strengthen India’s global competitiveness, enhance growth potential, and create a sustainable and resilient future for the country.

Power Sector Reforms

The power sector has received significant attention in the Union Budget 2025-26, with the introduction of reforms to improve efficiency, sustainability, and affordability in India’s energy future. Manohar Lal noted that the budget aligns with the government’s vision of ensuring a secure and affordable energy supply for all.

“The government’s focus on improving the financial and operational stability of electricity distribution companies, along with incentives for enhancing intra-state transmission capacity, will significantly boost the efficiency of the power sector,” said Lal.

The budget also proposes the full exemption of customs duty on lithium-ion battery scraps, lead, zinc, and 12 more critical minerals. This move aims to secure the availability of essential raw materials for battery manufacturing within the country, ultimately fostering job creation, especially for India’s youth. Additionally, the Budget has included 35 more capital goods for electric vehicle (EV) battery manufacturing to further support the electric vehicle ecosystem.

Nuclear Energy Vision

A key highlight of the budget is the focus on nuclear energy, a critical component of India’s transition to clean and sustainable energy. Manohar Lal commended the government’s vision to develop at least 100 GW of nuclear power by 2047, underscoring the importance of nuclear energy in achieving long-term energy goals.

He welcomed the launch of the Nuclear Energy Mission with an allocation of ₹20,000 crore for research and development into Small Modular Reactors (SMRs). This allocation is a significant step forward in India’s quest to reduce its reliance on conventional sources of energy and transition towards cleaner alternatives.

The government has set an ambitious target of operationalizing at least five indigenously developed SMRs by 2033, marking a milestone in India’s energy security. This will not only strengthen India’s energy infrastructure but will also position the country as a leader in advanced nuclear technology.

Powering India’s Future

Manohar Lal further emphasized that the focus on nuclear energy and other clean energy sources will pave the way for a resilient, efficient, and sustainable energy future for India. The Union Budget 2025-26 sets the stage for economic growth that is powered by clean and reliable energy sources, ensuring that India’s growth trajectory is not only robust but also aligned with global sustainability goals.