Union Budget 2023-24 Expectation: What energy sector hopes to get from finance minister

The Union Budget 2023-24 is just a few days away. All eyes will be glued to the Budget announcement by Finance Minister Nirmala Sitharaman on 1 February. This year, the energy sector in the country has big hopes from the Union Budget 2023. The Indian government is aiming to reduce the total projected carbon emission by 1 billion tonnes by the end of the decade. It also wants to lower the carbon intensity of the country’s economy to less than 45 percent by 2030. It also aims to achieve zero carbon emissions by 2070. Clean energy industry experts are hoping for several positive announcements in this year’s budget. Here are some of the expectations that the energy sector has from the Union Budget 2023-24: PLI scheme for boosting domestic manufacturing of green and sustainable solutions According to a report by Financial Express, it is likely that the government will take action around climate financing and mobilising more resources in the upcoming budget. The report adds that the government will do this by raising the allocation in the Production Linked Incentive (PLI) scheme to boost the domestic manufacturing of green and sustainable solutions. PLI in ammonia sector expected In 2019, India imported the largest amount of ammonia worldwide, with 2.9 million metric tons, according to Statista. Ammonia is the cornerstone of energy transition and food security. Some ammonia plants are much older than the global average of 12 years, which causes production inefficiencies. Raghunath K, Country Representative, thyssenkrupp India, told Financial Express that India’s ammonia capacity needs to be ramped up a lot. He added that this includes greenfield plants and also complete renovation of older ammonia plants, adding the latest production technology. Specific policies to support the growth of renewable energy sector The renewable energy sector is an unviable investment option for many investors due to low tariffs, high investment, and project execution challenges. The tariff rate is declining continuously because of stiff competition in the market and other factors, leading to low return. The report suggests that it is imperative for the government to draft specific policies to support the growth of the renewable energy sector, mainly for the wind sector. The government needs to intensify research efforts and focus on technical advancement for wind original equipment manufacturers (OEMs). Read all the Latest News , Trending News ,  Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook , Twitter and Instagram .