With India’s commitment to renewable energy transition, the Union Budget 2025-26 on February 1 allocated Rs 26,549.38 crore to the Ministry of New and Renewable Energy, up 53.48% against Revised Estimates of Rs 17,298.44 crore a year ago. The allocation has increased by 904% since FY21.
The government allocated Rs 24,224.36 crore out of the amount towards solar energy. This includes Rs 1,500 crore towards solar power (grid), Rs 2,600 crore towards Kisan Urja Suraksha evam Utthaan Mahabhiyan (KUSUM) and Rs 20,000 crore towards PM Surya Ghar Muft Bijli Yojana.
The PM Surya Ghar Muft Bijli Yojana launched by the government aims at solarising one crore households by providing free electricity up to 300 units every month. Provision is for PM-KUSUM Yojana launched by the government to increase the income of farmers and provide sources for irrigation and de-dieselisation agricultural sector. Under the scheme, the subsidy is given for the installation of standalone solar pumps and for solarisation of existing grid-connected agricultural pumps.
The government also allocated Rs 600 crore towards the Hydrogen Mission.
Meanwhile, shares of renewable energy-related stocks traded mixed in the afternoon trade on February 1. Shares of Suzlon Energy and Waaree Renewables were down 0.43% and 0.86% at Rs 57.90 and 1,004.95 in the afternoon trade. Waa Solar was down 2.34% at Rs 96 at around 2.10 pm (IST). On the other hand, the benchmark BSE Sensex was up 0.14% at 77,607 at around the same time.
While sharing more developments, Divyam Mour, Research Analyst, SAMCO Securities said, “In a significant push towards self-reliance in renewable energy, the Government of India has launched a new manufacturing mission under the ambitious Make in India initiative. This strategic move aims to establish a robust ecosystem for the production of solar photovoltaic (PV) cells, electrolysers, and grid-scale batteries — key components in advancing India’s clean energy transition.”
He added that the initiative is expected to be a game-changer for leading solar PV manufacturers such as Premier Energies, Waaree Energies, and Adani Enterprises, boosting domestic production capabilities and reducing import dependencies. Additionally, battery manufacturing giants like Amara Raja Batteries, HBL Power Systems, and Exide Industries stand to gain from the mission’s focus on strengthening the country’s energy storage infrastructure.
“Beyond solar and energy storage, the initiative will provide a strong impetus to companies engaged in wind turbine manufacturing and other renewable energy solutions. Industry players like Inox Wind, Orient Green Energy, Suzlon Energy, and KPI Green Energy are expected to witness significant growth opportunities as India reinforces its commitment to clean energy and sustainable industrial expansion,” Mour said.
Overall, Rahul Jain, President & Head, Nuvama Wealth believes that the Budget 2025 has tried to strike a commendable balance between economic growth and fiscal consolidation by putting more money in the hands of middle-income group by raising the income tax rebate to Rs 12 lakh, maintaining the capex for FY26 at Rs 11.21 lakh crore, and adhering to a fiscal deficit of 4.4%of GDP.
“It continues the path of income tax reforms by streamlining the TDS and TCS regulations. Overall, the budget is characterised by its inclusiveness, emphasising sectors such as agriculture, urban development, physical and digital infrastructure, and the enhancement of manufacturing capabilities through the National Manufacturing Mission,” Jain said.
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