Sitharaman’s announcements are in line with PM Modi’s 2021 Glasgow declaration on Net Zero by 2070
The announcement of viability gap funding for harnessing offshore wind energy potential for an initial capacity of 1 gigawatt is a game changer. Photo: iStock India’s interim budgets have traditionally offered little from a policy perspective. However, it is encouraging to note that the incumbent government has made the most of it by outlining the contours of a New Green Deal for India under the interim budget for 2024-25. The signs of this deal have gradually emerged through the various announcements over the years and this time has been no different.
The Modi government has stated its commitment to green growth and sustainable development, arising from India’s commitments to the global efforts to combat the effects of climate change. Finance Minister Nirmala Sitharaman’s announcements are in line with Prime Minister Narendra Modi’s Glasgow speech in 2021, when the declaration on Net Zero by 2070 was first made.
While the big focus on green energy generation has always been around, in recent years, the wind energy sector has started to see growth challenges. The announcement of viability gap funding for harnessing offshore wind energy potential for an initial capacity of 1 gigawatt is a game changer that will significantly boost the growth of this industry.
From a clean fuel perspective, market creation has evolved through the phased mandatory blending of compressed biogas (CBG) in compressed natural gas for transport and cooking. This, in particular, is a long-standing demand of the CBG industry, and supporting it helps unlock a new phase of green growth for India.
Biomass aggregation machinery has been a big roadblock for the bio-energy industry as a whole, preventing it from achieving its full potential. The Rs 100 crore announcement for it is a step forward in this regard.
In this spirit, the focus on moving away from dependence on crude oil for key industries is welcome. The government has promised a new scheme of bio-manufacturing and bio-foundry to provide environment-friendly alternatives such as biodegradable polymers, bio-plastics, bio-pharmaceuticals and bio-agri-inputs. This scheme has the potential, if implemented right, to transform today’s consumptive manufacturing paradigm.
Similarly, coal gasification targets of 100 tonnes also contribute to using coal in a more sustainable manner to replace petroleum products. This creates an important effect — ringfencing India from the shocks of petroleum price hikes, a significant chunk of which goes for refining and producing these products.
This continues from last year’s budget, where the government showed its intent to diversify India’s fuel basket via announcements supported by budgetary allocations, be it Rs 600 crore for National Green Hydrogen Mission or Rs 117 crore for Pradhan Mantri JI-VAN Yojana for bioethanol.
On clean transport, as the government committed to the significant expansion of metro and Namo Bharat rapid rail transit systems, we also saw impetus to support the expansion and strengthening of the electric vehicle (EV) ecosystem. Support for manufacturing and charging infrastructure has been promised, while a payment security mechanism for greater adoption of e-buses for public transport networks will help expand the market significantly.
The government also displayed its intent to continue supporting EV adoption via the FAME Scheme, for which Rs 2,761 crore have been allocated.
The interim budget also gave an insight into the government’s thinking on critical minerals and the geopolitics around them. The focus on securing supply chains, and addressing the issues of competition for critical minerals and technologies has been acknowledged. Additionally, the announcement of creating rail corridors for critical minerals enables faster access internally, enabling increased competitiveness in this new green economy segment.
Additionally, the government’s rooftop solarisation to support EV charging is welcome. Charging of EVs using coal-based grids has been a significant concern due to its potential impact on increasing greenhouse gas emissions arising from increased electricity demand.
The penetration of solar energy at this stage aids the process of high decarbonisation for the EV sector. The allocation — Rs 8,500 crore for grid connected solar initiatives — will definitely have a transformative impact.
The overarching nature of green growth is clear with the reference to a blue economy. To ensure that blue economy activities are resilient to climate change impacts, a scheme for restoration and adaptation measures and coastal aquaculture and mariculture with an integrated and multi-sectoral approach has been announced. This benefits the large number of people living along India’s coastline who depend on fishing for livelihoods and are directly impacted.
India’s focus must remain on balancing environmental awareness with economic development. A green growth model tailored to the country’s needs that aims to generate employment for the country’s multi-talented youth can make it a leading player in the global effort against climate change.
Rohit Pathania is Lead - Centre for Clean Mobility at OMI Foundation
Views expressed are the author’s own and don’t necessarily reflect those of Down To Earth
We are a voice to you; you have been a support to us. Together we build journalism that is independent, credible and fearless. You can further help us by making a donation. This will mean a lot for our ability to bring you news, perspectives and analysis from the ground so that we can make change together.
.png)
Comments are moderated and will be published only after the site moderator’s approval. Please use a genuine email ID and provide your name. Selected comments may also be used in the ‘Letters’ section of the Down To Earth print edition.