“India is moving forward firmly for the ‘panchamrit’ and net-zero carbon emission by 2070 to usher in green industrial and economic transition.”, the Union Minister for Finance and Corporate Affairs, Smt Nirmala Sitharaman, said while presenting the Union Budget 2023-24 in Parliament today. Highlighting the vision for “LiFE”, or Lifestyle for Environment, aimed at spurring a movement of environmentally conscious lifestyle, Finance Minister added that the budget builds on our focus on ‘Green Growth’, which will guide us through the Amrit Kaal.

Green Hydrogen Mission

While mentioning the recently announced National Green Hydrogen Mission, Finance Minister explained that it will facilitate the transition of the economy to a low carbon intensity & reduce dependence on fossil fuel imports. “It will also make country assume technology and market leadership in this sunrise sector.”, she added.

 Smt. Sitharaman also announced India’s target to reach an annual production of 5 MMT by 2030.

Energy transition and storage projects

Finance Minister proposed an allocation of ₹ 35,000 crore for priority capital investments

towards energy transition and net zero objectives, and energy security by Ministry of Petroleum & Natural Gas.

Finance Minister stated that Battery Energy Storage Systems with capacity of 4,000 MWH will be supported with Viability Gap Funding. “A detailed framework for Pumped Storage Projects will also be formulated”, she added while announcing the measures for steering the economy on the sustainable development path.

Renewable Energy Evacuation

The Inter-state transmission system for evacuation and grid integration of 13 GW renewable energy from Ladakh has been proposed with an investment of ₹ 20,700 crore including central support of ₹ 8,300 crore.

Green Credit Programme

Finance Minister proposed a Green Credit Programme, to be notified under the Environment (Protection) Act. for encouraging behavioural change by incentivizing environmentally sustainable and responsive actions by companies, individuals and local bodies. “This will help mobilize additional resources for such activities”, she added.

PM-PRANAM

“PM Programme for Restoration, Awareness, Nourishment and Amelioration of Mother Earth” will be launched to incentivize States and Union Territories to promote alternative fertilizers and balanced use of chemical fertilizers.

GOBARdhan scheme

Establishment of 500 new ‘waste to wealth’ plants under GOBARdhan (Galvanizing Organic Bio-Agro Resources Dhan) scheme have been proposed for promoting circular economy. These will include 200 compressed biogas (CBG) plants, including 75 plants in urban areas, and 300 community or cluster-based plants at total investment of ₹ 10,000 crore.

To avoid cascading of taxes on blended compressed natural gas, exemption of excise duty on GST-paid CBG contained in it, has also been proposed.

Finance Minister also announced a proposal for introducing a 5 per cent CBG mandate in due course, for all organizations marketing natural and bio gas,. “For collection of bio-mass and distribution of bio-manure, appropriate fiscal support will be provided.”, she added

Bhartiya Prakritik Kheti Bio-Input Resource Centres

“Over the next 3 years, we will facilitate 1 crore farmers to adopt natural farming.”, the Finance Minister said while announcing the proposal to set-up 10,000 Bio-Input Resource Centres, thereby creating a national-level distributed micro-fertilizer and pesticide manufacturing network.

MISHTI

Building on India’s success in afforestation, Finance Minister announced that ‘Mangrove Initiative for Shoreline Habitats & Tangible Incomes’ will be taken up for mangrove plantation along the coastline and on salt pan lands, wherever feasible, through convergence between MGNREGS, CAMPA Fund and other sources.

Amrit Dharohar

Highlighting the importance of local communities in conserving the wetland ecosystem, Finance Minister also announced the Amrit Dharohar scheme which will promote their unique conservation values. This scheme will be implemented over the next three years to encourage optimal use of wetlands, and enhance bio-diversity, carbon stock, eco-tourism opportunities and income generation for local communities

RM/KS