Union Budget 2024-25 & Sustainability: India Inc Expectations

India aims to install 500 GW of renewable energy projects by 2030. Currently, we are at approximately 194 GW, so achieving this ambitious target will require strong policy support and a proactive government push. Continuation of effective policies, such as the waiver of Inter State Transmission System (ISTS) charges and zero customs duty on ingots and other materials for solar module production, is crucial. 

With more intermittent renewable energy in the grid, the budget should support storage solutions to address green power unavailability during peak times. Implementing a storage obligation and reducing duties on batteries, along with other fiscal incentives, will help lower storage costs and enhance grid resilience. 

In the area of green hydrogen, the Strategic Interventions for Green Hydrogen Transition (SIGHT) program is progressing well, with projects being awarded to successful bidders for electrolyser manufacturing and green hydrogen production facilities. However, as the sector is still evolving and current costs are a major deterrent, the budget can promote offtakes by providing incentives or viability gap funding. Additionally, the budget should focus on infrastructure development for the entire green hydrogen value chain, including pipeline networks to facilitate offtakes.

Source:- Business Outlook