Budget2022 is a step towards innovative & sustainable development in New India to strengthen our Energy Transition journey and fight climate change: Power Minister

Additional Allocation of Rs. 19,500 crore proposed for production linked incentives for manufacturing of high efficiency modules

Sovereign Green Bonds will be issued for mobilizing resources for green infrastructure

The government aims to attain the vision of promoting energy transition and climate action during the Amrit kaal. While presenting the Union Budget 2022-23 in Parliament today, Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman, laid emphasis on the vision  of promoting energy transition and climate action during the Amrit kaal  and put this as one of the important priorities of the country for moving forward.

Speaking on the budget specially on the power and renewable energy sector Union Minister for Power and MNRE Shri R.K Singh said "Congratulations to Finance Minister  on a forward-looking Union Budget 2022-23. Aatmanirbhar Bharat Ka Budget of 2022 has laid the blueprint for India’s Amrit Kaal, covering areas like infrastructure, digitisation, agriculture, fiscal management, technology & manufacturing. Budget2022 is a step towards innovative & sustainable development in New India to strengthen our Energy Transition journey and fight climate change."

 Energy Transition and Climate Action

“The risks of climate change are the strongest negative externalities that affect India and other countries”, the Union Finance Minister said while addressing the Parliament. She re-iterated the low carbon development strategy, announced by the Prime Minister, as an important reflection of our government’s strong commitment towards sustainable development.

This strategy opens up huge employment opportunities and the budget proposes several near-term and long-term actions in this regard.

The Budget has proposed an additional allocation of Rs. 19,500 crore for Production Linked Incentive for manufacture of high efficiency modules. This will also ensure the domestic manufacturing required for achieving the ambitious goal of 280 GW of installed solar capacity by 2030.

As a part of the government’s overall market borrowings in 2022-23, sovereign Green Bonds will be issued for mobilizing resources for green infrastructure. The proceeds will be deployed in public sector projects which help in reducing the carbon intensity of the economy.