While aiming to promote energy transition and low carbon development strategy, the Union Finance Minister Nirmala Sitharaman on Tuesday proposed an additional allocation of Rs. 19,500 crore for Production Linked Incentive for the manufacture of high-efficiency modules.
This would also ensure to meet the ambitious domestic manufacturing goal of 280 GW of installed solar capacity by 2030, the Minister said in her Budget speech. She said the government has targeted to attain the vision of promoting energy transition and promoting a low carbon strategy. She said the government’s initiative to co-fire biomass pellets in thermal plants would result in CO2 savings of 38 MMT annually.
“This will also provide extra income to farmers and job opportunities to locals and help avoid stubble burning in agriculture fields”, the Finance Minister added.
She said the business model of the Energy Service Company (ESCO) in large commercial buildings would also facilitate capacity building and awareness for energy audits, performance contracts, and common measurement and verification protocols. Besides, four pilot projects for coal gasification and conversion of coal into chemicals required for the industry have also been proposed to evolve technical and financial viability, the Finance Minister said.
The government would also make the required legislative changes and change in government policies to promote agroforestry and private forestry will be brought in. “In addition, financial support will be provided to farmers belonging to Scheduled Castes and Scheduled Tribes, who want to take up agroforestry,” the Finance Minister said.
The government is also promoting a circular economy transition, which is expected to help in productivity enhancement as well as create large opportunities for new businesses and jobs. “The action plans for ten sectors such as electronic waste, end-of-life vehicles, used oil waste, and toxic & hazardous industrial waste are ready,” the Minister said.
She said the focus now would be on addressing important cross-cutting issues of infrastructure, reverse logistics, technology up-gradation, and integration with the informal sector.
“This will be supported by active public policies covering regulations, extended producers’ responsibilities framework, and innovation facilitation,” the Finance Minister said.