Industry experts have hailed the government’s initiatives to boost clean energy, such as the nuclear mission, incentives for critical minerals, and renewable equipment, outlined in the Union Budget presented by Finance Minister Nirmala Sitharaman on Saturday.
Key Budget Announcements For Clean Energy
Sitharaman announced a significant Rs 20,000-crore nuclear mission and duty exemptions for crucial minerals and capital goods for electric vehicles (EVs) to advance energy transition.
Rajat Verma, Founder & CEO of LOHUM, stated, “The 2025 budget marks a watershed moment in India’s journey toward clean energy sovereignty and circular economy leadership. The government’s strategic vision for domestic manufacturing and critical minerals recycling demonstrates remarkable foresight in securing our sustainable future.”
Removing import duties on lithium-ion battery scrap, cobalt powder, and various critical mineral wastes opens up significant new opportunities.
Verma further emphasized that the expanded duty exemptions to 63 additional capital goods for EV and mobile battery production will lay a strong foundation for India’s manufacturing sector.
Verma stated that the landmark Rs 20,000 crore investment in private-sector R&D for emerging technologies marks a transformative step toward building a sustainable critical minerals ecosystem.
Wind & Hydrogen Energy Investments
Devansh Jain, Executive Director at INOXGFL Group, commented, “The emphasis on wind energy, the National Green Hydrogen Mission, and EV infrastructure, along with dedicated support for Clean Tech manufacturing, marks a transformative step toward sustainability.”
He highlighted that the budget bolsters India’s clean energy ecosystem by promoting domestic production of solar PV cells, EV batteries, motors, controllers, electrolyzers, wind turbines, high-voltage transmission equipment, and grid-scale batteries.
Jain expressed that investments in offshore wind capacity, green hydrogen production, and hybrid renewable projects will fuel innovation, generate jobs, and stimulate economic growth.
Sunil Mathur, Managing Director and CEO of Siemens Ltd, said that the Budget 2025 announcements will boost consumption, which in turn will drive demand and manufacturing in the private sector.
He welcomed the focus on clean technology and measures to support startups and MSMEs, as well as the 10% increase in Capex spending for infrastructure development, reinforcing the government’s commitment to world-class infrastructure.
Bikesh Ogra, MD & CEO of Jakson Green noted, “Crucially, the budget emphasizes power sector reforms, incentivizing states to modernize distribution and transmission infrastructure i.e essential for seamlessly integrating RE sources into the grid and ensuring a stable power supply. The proposed PPP model for infrastructure development, coupled with substantial interest-free loans, will catalyze investments in RE projects.”
Ogra also welcomed the proposed amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act, along with greater private sector participation.
National Critical Minerals Mission
The National Critical Minerals Mission plays a crucial role in securing access to essential minerals like lithium and cobalt. These minerals are vital for producing renewable energy technologies and safeguarding energy security.
Saurabh Kumar, Vice President – India at GEAPP, noted, “The National Manufacturing Mission will provide impetus to domestic production of clean technologies such as solar PV cells and grid-scale batteries. It will scale up the deployment of renewable energy and make India a crucial link in the global supply chains.”
“The focus on implementing private sector-driven research, development and innovation will augment our capabilities to nurture innovative solutions for a people-positive energy transition,” he further added.
Varchasvi Gagal, Managing Director & CEO of Datta Infra, hailed the initiative to promote solar cell manufacturing as a strategic step towards creating a robust manufacturing ecosystem in India.
Gagal highlighted that this move will not only enhance self-reliance in solar cell production but will also accelerate India’s progress toward its 500-gigawatt renewable energy target by 2030.
Raman Bhatia, Founder & MD of Servotech Renewable Power System, emphasized the importance of incentivizing electricity distribution reforms and augmenting transmission capacity, which are crucial for the growth of renewable energy and EVs.
He noted that the inclusion of 35 additional capital goods for EV battery manufacturing will provide a significant boost to domestic lithium-ion battery production.
Experts agree that the Budget 2025-26’s measures will contribute to strengthening India’s clean energy sector, fostering innovation, and ensuring sustainable industrial development.
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