Budget 2024 Allocates Rs 11,500 Crore to Wind & Solar Energy Projects

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The government has put forth a proposal in the Interim Budget 2024, allocating a total funding exceeding Rs 11,500 crore for Solar Power (Grid), the National Green Hydrogen Mission, and Wind Power (Grid) projects for the fiscal year concluding in March 2025.

In the fiscal year 2024-25, there has been a surge in the financial allocation dedicated to solar initiatives, witnessing a upswing to Rs 10,000 crore. This marked increase represents a remarkable uptick of 110% from the previously revised estimates, which stood at Rs 4,757 crore.

Simultaneously, the budgetary provision for the National Green Hydrogen Mission has undergone a remarkable five-fold surge, surging to Rs 600 crore for the fiscal year 2024-25. Additionally, the government has raised the allocation for wind to Rs 930 crore, signaling a modest 1.5% increase from the previous Rs 916 crore.

Aditya Damani, Founder and CEO of Credit Fair, expressed, “The government’s emphasis on rooftop solar, green energy research, Viability Gap Funding for wind energy projects, biofuels, bio-manufacturing, food processing industries, procurement, and processing of agricultural produces, MSMEs, and financial assistance to women Self-Help Groups will rejuvenate the nation’s clean energy endeavors and stimulate robust economic growth in rural areas.”

Damani added, “Increased capital expenditure, accounting for 3.4% of GDP, railway modernization, and economic corridors under the PM Gati Sakti Scheme, deep-tech technology for the defense sector, skill development, and a revolution in air connectivity through the Udan scheme will contribute significantly to achieving the country’s ambitious growth targets. In essence, the Interim Budget revolves around two major themes: a push for rural development and higher investment in infrastructure.”

Subahoo Chordia, President & Head of Real Assets at Edelweiss Alternatives, remarked, “The budget serves as another illustration of the sustained government backing for the infrastructure sector, evident in an over 11% increase in allocation.”

Chordia added, “Initiatives such as the development of multi-modal connectivity, a renewed emphasis on advancing solar and wind energy technologies, including offshore wind, and the enhancement of railway infrastructure are poised to propel economic growth. The support for sustainable technologies, including electric vehicles and charging infrastructure, augurs well for a cleaner future. Overall, the budget is anticipated to pave the way for sustained economic growth.”

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