Budget 2025: Driving Investments in ESS and Green Hydrogen in India
Key Ideas
- India's commitment to infrastructure development and green energy is evident through ambitious targets for net-zero emissions and renewable energy capacity.
- The National Green Hydrogen Mission aims to boost green hydrogen production with a substantial budget allocation, encouraging the establishment of green hydrogen hubs.
- The Budget 2025 provides an opportunity for the Indian Government to attract investments in Energy Storage Systems and Green Hydrogen projects by considering tax incentives and regulatory enhancements.
- Inclusion of Green Hydrogen Production Projects in the Harmonized Master List of Infrastructure could attract foreign capital, InvIT investments, and financing options, fostering growth in sustainable energy sectors.
The article discusses the significant opportunity presented by Budget 2025 for the Indian Government to attract investments in Energy Storage Systems (ESS) and Green Hydrogen projects. India's focus on energy transition and infrastructure development is highlighted through targets for achieving net-zero emissions by 2070 and increasing the share of non-fossil fuel sources in the energy mix. The National Electricity Plan projects a substantial increase in energy storage capacity requirements, emphasizing the importance of ESS for grid stability and continuous power supply. Moreover, the National Green Hydrogen Mission aims to promote green hydrogen production by allocating a significant budget to establish green hydrogen hubs.
The article suggests various steps that the Indian Government can take to enhance investments in these sectors, including the inclusion of Green Hydrogen Production Projects in the Harmonized Master List of Infrastructure. This inclusion could attract foreign capital through the Foreign Venture Capital Investor route, InvIT investments, and financing options, thereby accelerating growth in the green energy sector. Additionally, the extension of the sunset date for concessional tax rates under Section 115BAB of the Income Tax Act is highlighted as a key consideration for Budget 2025.
Overall, the sentiment of the article is positive, emphasizing the potential for India to strengthen its position in sustainable energy through strategic investments and regulatory support.
Topics
Investing
Renewable Energy
Climate Change
Energy Transition
Infrastructure Development
Investment Opportunities
Tax Incentives
Infrastructure Financing
Foreign Capital
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