Empowering India's Energy Transition: Calls for Enhanced Investment and Policy Support in Union Budget 2025
Key Ideas
- Industry leaders urge increased investments in solar, wind, green hydrogen, energy storage, and grid modernization for India's energy security and self-reliance.
- Calls for extending and enhancing the Production-Linked Incentive (PLI) scheme to boost domestic manufacturing capabilities and achieve the 500 GW renewable power target by 2030.
- Recommendations include uniform GST rates on batteries, reduced GST on solar panels and wind turbines, tax incentives, and financial support to drive growth in the renewable energy sector.
- Emphasis on strategic integration of circular economy principles, infrastructure development, and innovation to lower green hydrogen production costs for large-scale deployment.
As the Union Budget 2025-26 approaches, leaders in the energy sector in New Delhi are advocating for increased focus on renewable energy, domestic manufacturing, and tax reforms to accelerate India's energy transition. The industry is urging the government to prioritize investments in solar, wind, green hydrogen, energy storage, and grid modernization to reduce reliance on imports and enhance energy security. Notable suggestions include extending the Production-Linked Incentive (PLI) scheme, introducing tax benefits, and enhancing export subsidies to bolster domestic manufacturing capabilities. With India surpassing 200 GW in renewable energy capacity, there is a call to enhance policy support to achieve the 500 GW target by 2030. Recommendations also include uniform GST rates on batteries, reduced GST on solar panels and wind turbines, and financial relief for manufacturers in the solar sector. The sector emphasizes the importance of financial mechanisms, regulatory frameworks, and infrastructure development to drive growth in energy storage and grid modernization. The industry recognizes the significance of green hydrogen and calls for fiscal incentives and infrastructure development to reduce production costs. The sentiment towards hydrogen and renewable energy in the article is positive, highlighting the sector's expected growth in 2025 with the right policy support in place.
Topics
India
Renewable Energy
Investment
Manufacturing
Energy Storage
Policy Support
Grid Modernization
Tax Reform
Fiscal Incentives
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