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India's Green Energy Push: Budget Boosts Storage & Solar
1 Feb
Summary
- Budget extends customs duty exemption for lithium-ion cell manufacturing.
- Solar glass production gets a boost with BCD exemption on key material.
- New scheme launched to adopt Carbon Capture, Utilization, and Storage.
The Union Budget is driving forward India's renewable energy and storage sectors with significant fiscal incentives. Union Minister Pralhad Joshi highlighted that the budget's provisions are designed to accelerate grid-scale energy storage and ensure the seamless integration of renewable energy sources into the national grid.
Key among these measures is the extension of Basic Customs Duty (BCD) exemption on capital goods essential for manufacturing lithium-ion cells used in batteries and Battery Energy Storage Systems (BESS). This aims to boost domestic production and reduce reliance on imports for critical energy storage components.
Furthermore, the budget proposes to exempt BCD on sodium antimonate, a crucial component in solar glass manufacturing. This move is expected to significantly strengthen India's domestic solar manufacturing ecosystem, making solar energy production more cost-effective and competitive.
Complementing these efforts, Finance Minister Nirmala Sitharaman announced a new scheme with an outlay of Rs 20,000 crore dedicated to the adoption of Carbon Capture, Utilization, and Storage (CCUS) technologies. This initiative underscores India's commitment to reducing carbon emissions and building a resilient, self-reliant, and sustainable energy future.
