Budget 2023-24: What should India expect in the energy sector?

With the start of the new year, India also awaits what the government will bring in its annual budget. From income tax to other policies, people look forward to the finance minister’s speech in Parliament. On February 1, India’s Finance Minister Nirmala Sitharaman will present the Union Budget, also known as the Annual Financial Statement. 

Among other sectors, the government’s focus on the energy sector will be closely monitored, considering the set targets in green energy, which is expected to play an important role in India’s economic growth. 

The Indian government is committed to reducing the nation’s total projected carbon emission by 1 billion tonnes by the end of the decade. 

The government aims at reducing the carbon intensity of the nation’s economy by less than 45 per cent by 2030, and also achieve net-zero carbon emissions by 2070. 

Indian economy is growing rapidly and with a population of 1.3 billion, which is expected to surpass China, there is a massive demand for energy to fuel the nation. Hence, to fulfil its sustainable goals, the government is expected to announce groundbreaking policies. 

Industry leaders of clean energy are also expecting some positive announcements in the budget. 

Hardip Singh Rai, the chief executive officer (CEO), of THINK Gas, said that the “net-zero target highlights the need for a robust natural gas ecosystem for India”. 

Rai said that some of the key policy interventions required towards “fulfilling the vision of transforming India into a gas-based economy include bringing natural gas under the ambit of Goods and Services Tax (GST)”. 

He added there is a need to review domestic gas pricing along the lines of the Kirit Parikh Committee, moderating the central excise duty rate on CNG and encouraging the surrender of LPG connections in favour of PNG. 

He added, “We are hopeful that this year’s budget will help address the concerns as the government is taking several steps to ensure that we can achieve sustainable energy security and progress.” 

THINK Gas aspires to deliver clean fuel to the people, for the benefit of the nation. It has licences to operate city gas distribution networks in 13 districts in India, across the states of Punjab, Madhya Pradesh, Himachal Pradesh, Uttar Pradesh and Bihar. 

On the other hand, Dr Prateek Kanakia, the chairman and founder of TheGreenBillions Limited, said: “The Budget 2022 was a step in the right direction with climate change and clean energy on its agenda.” 

TheGreenBillions Limited (TGBL) is a company specialising in consulting, managing, and executing sustainable initiatives. 

“Government of India’s latest announcement on making India a hub for producing Green Hydrogen is a sign of the seriousness with which India needs to fight climate change,” Kanakia further added. 

He said that the nation must fight climate change with clean energy and from the upcoming budget, it is expected that actions will be taken around climate financing and mobilising more resources by increasing allocation in the Production Linked Incentive (PLI) scheme for boosting the domestic manufacturing of green and sustainable solutions. 

“Steps that will bring the focus on identifying, developing alternative energy sources, mainly green and clean sources that do not harm the environment, are what we need from the upcoming budget,” Kanakia said. 

You can now write for and be a part of the community. Share your stories and opinions with us here.

Source link

Related Articles

Leave a Reply

Back to top button