Finance Minister Nirmala Sitharaman announced a push in the green energy sector in the Budget 2023. The announcement comes as India seeks to drive decarbonization and growth in sustainable energy. FM Sitharaman stated that the country would focus on green growth efforts to reduce carbon intensity and create green jobs. Green and renewable energy companies’ stocks soared on the back of this news. Inox Green Energy jumped 6.9%, Inox Wind saw a gain of 5.8%. CNG heavyweight Gujarat Gas soared 5.7% and Borosil Renweables shot up by 8.79%.
The FM Sitharaman announced the National Green Hydrogen Mission, with Rs 19,700 crore to facilitate transition of economy from fossil fuels to green power. Investors and industry professionals closely watched the government’s attention to the energy sector in the budget, especially since the Center established for goals green energy, which is anticipated to play a significant part in India’s economic growth. By the end of the decade, the government is committed to lowering India’s estimated total carbon emissions by 1 billion tonnes. It aspires to attain net-zero carbon emissions by 2070 and a reduction in the carbon intensity of the economy of the country of less than 45% by 2030. Clean energy industry experts anticipate some encouraging revelations in the upcoming budget. Experts also believe that the Budget should contain PLIs (Production Linked Incentive) for boosting the domestic manufacturing of green and sustainable solutions.
Santosh Janakiram, partner, Cyril Amarchand Mangaldas and head, Projects & Financial Institutions Group, India, told FinancialExpress.com earlier this week that India requires $500 billion to achieve its target of 500 gigawatts (GW) of sustainable energy by 2030. Additionally, Janakiram stated, “These funds will be put towards the generation, transmission, and storage of renewable energy.” Adding, “A major source of this capital can be domestic as well as international debt financing – a successful example of which is Adani Green, which acquired one billion dollars entirely through international debt financing. A similar strategy may be adopted in the Budget 2023.”