Budget 2023-24: Govt prioritises energy security with reduced emission

New Delhi: The recently launched National Green Hydrogen Mission (NGHM) with an outlay of 19,700 crores will facilitate the transition of the economy to low carbon intensity and reduce dependents on fossil fuel imports. The NGHM aims to make India a global hub for producing, using and exporting green hydrogen and its derivatives. This will contribute to India’s aim to become Aatmanirbhar (self-reliant) through clean energy and serve as an inspiration for the global ‘Clean Energy Transition’. The mission will lead to significant decarbonisation of the economy, reduced dependence on fossil fuel imports, and enable India to assume technology and market leadership in Green Hydrogen. This Budget also provides Rs. 35,000 crores for priority capital investment for energy transition and net zero objectives and energy security to steer the economy on a sustainable development path. ‘Interstate Transmission System’ for ‘Evacuation and Grid Integration’ of 13 GW renewable energy from Ladakh to be constructed with an investment of Rs. 20,700 crores, including central support of Rs. 8,300 crores, Finance Minister said. Further, the ‘Green Credit Programme’ is all set to be notified under the ‘Environment Protection Act, to encourage environmentally sustainable and responsible actions by companies, individuals and local bodies, and help mobilize resources for such activities GREEN GROWTH AND ENVIRONMENT Annual production of 5 MMT under the Green Hydrogen Mission is to be targeted by 2030 to facilitate the transition of the economy to low carbon intensity and to reduce dependence on fossil fuel imports. At least ₹35000 crore outlay for energy security, energy transition and net zero objectives. Battery energy storage systems are to be promoted to steer the economy on the sustainable development path. 20,700 crore outlay provided for renewable energy grid integration and evacuation from Ladakh. “PM Programme for Restoration, Awareness, Nourishment and Amelioration of Mother Earth” (PM-PRANAM) to be launched to incentivize States and Union Territories to promote alternative fertilizers and balanced use of chemical fertilizers.‘ Green credit programme to be notified under the Environment (Protection) Act to incentivize and mobilize additional resources for environmentally sustainable and responsive actions. Amrit Dharohar scheme to be implemented over the next three years to encourage optimal use of wetlands, enhance bio-diversity, carbon stock, eco-tourism opportunities and income generation for local communities. It is estimated that currently around 5 MMT (Million Metric Tonne) of Hydrogen is consumed annually in India for various industrial purposes like petroleum refining, manufacturing of ammonia for fertilizers, methanol production, treatment and production of metals etc. Most of this Hydrogen is currently sourced from fossil fuels through the steam reformation of natural gas etc and is referred to as grey hydrogen. The Chlor-alkali the industry also produces hydrogen gas as a by-product. While some hydrogen is produced by water electrolysis using grid electricity for specific applications. India has started pilot projects in recent years for the production of green hydrogen through the electrolysis of water using renewable electricity, and from biomass through thermochemical and biochemical routes. The mission aims to develop and scale up green hydrogen production technology and make it affordable and widely accessible. Industry leaders hailed the provisions announced by the finance minister. Anil Chaudhry, CEO & MD of Schneider Electric India Pvt. Ltd said that the FY24 budget lays a strong foundation for the sustainable development of India in the Amrit Kaal. With the goal of achieving net-zero emissions by 2070, it focuses on energy transition and decarbonization of the economy with a sizeable allocation of Rs 35,000 crore, he added. “The vision for ‘LiFE - Lifestyle for Environment’, is deeply ingrained in the budget and reaffirms the government’s commitment to tackle the climate crisis. Globally, India ranks fourth in installed renewable energy capacity and the budget will give a further fillip to the addition of capacities in areas like wind and solar. Key measures are being taken to support green growth, including viability gap funding for battery storage, renewable energy evacuation, National Green Hydrogen Mission, and green credit policy,’ Chaudhry added. Dr Satish Kumar, president & executive director of ‘Alliance for an Energy Efficient Economy’ (AEEE) said “The FY24 Budget appears to usher a phase of ‘green transition’, guiding the economy toward a sustainable development pathway. By focusing on implementing various initiatives to increase energy efficiency and lower carbon intensity, it demonstrates a commitment to foster green growth in the nation,”. “The proposed budget places a strong emphasis on the creation of large-scale green job opportunities to prepare young people for mitigating the effects of climate change. The National Green Hydrogen Mission’s outlay of INR 19,000 crore would also support and contribute to green growth and a net zero carbon future. The provision of INR 35,000 crore for energy transformation and net zero emissions would indeed help the nation in achieving its goal of net zero emissions by 2070,” he added. Co-Founder and Director, Log9 Materials, Pankaj Sharma said “Budget 2023-24 has mobilized multiple levers towards creating a green economy which is very promising. While the decision to scrap older ICE vehicles will definitely pave way for new EV deployments, investments in the energy storage space will cement the current gaps in India’s journey towards energy self-sufficiency. Furthermore, the launch of a green credit program will not just catalyse green technologies but in effect bring momentum towards India’s vision to become net zero by 2070.” Read all the  Latest News ,  Trending News ,  Cricket News ,  Bollywood News , India News  and  Entertainment News  here. Follow us on  Facebook,  Twitter and  Instagram.