Green push: Budget allocates Rs 35,000 Cr for energy transition and net-zero objectives

The finance minister has announced a slew of initiatives for green growth, geared towards farming, mobility, energy, reducing carbon emissions, and creating large-scale job opportunities.

Budget 2023 has set aside Rs 35,000 crore for investments in energy transition and net-zero objectives.

"India is moving forward firmly for the panchamrit and net-zero carbon emission by 2070 to usher in green industrial and economic transition. This Budget builds on our focus on green growth," said the Finance Minister, Nirmala Sitharaman.

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An inter-state transmission system, at an investment of Rs 20,700 crore, will be constructed to evacuate and integrate 13 gigawatt of renewable energy from Ladakh.

A Green Credit programme will be notified under the existing Environment (Protection) Act, under which environmentally responsible companies, local bodies and individuals, among others, will be incentivised.

The finance minister acknowledged the role of the National Green Hydrogen Mission, which recently received an outlay of Rs 19,700 crore. "(It) will facilitate transition of the economy to low carbon intensity, reduce dependence on fossil fuel imports, and make the country assume technology and market leadership in this sunrise sector," she said.

The PM Programme for Restoration, Awareness, Nourishment and Amelioration of Mother Earth will be launched to incentivise states and union territories to promote alternative fertilisers and balanced use of chemical fertilisers.

Emphasising the need to replace old vehicles for a green economy, the minister said adequate funds have been allocated to scrap old vehicles of the Central Government. "States will also be supported in replacing old vehicles and ambulances," she added.

The minister also proposed to exempt excise duty on compressed bio gas, which is present in blended compressed natural gas. This would help avoid the cascading of taxes on blended compressed natural gas, Sitharaman said.