February 1, 2024: During her presentation of Interim Budget 2024-25, union finance minister (FM) Nirmala Sitharaman today announced a comprehensive plan to achieve India’s ambitious Net Zero target by 2070. The finance minister allocated significant resources to boost the green energy sector, with a specific emphasis on tapping into India’s offshore wind energy potential.
One noteworthy initiative involves providing viability gap funding for the development of 1 gigawatt (GW) of offshore wind energy. This move is expected to play a pivotal role in diversifying India’s renewable energy portfolio and decreasing reliance on fossil fuels. Another crucial aspect of the strategy is the ambitious goal to establish coal gasification and liquefaction projects capable of processing 100 metric tonne by 2030. This initiative aims to reduce India’s import dependency on natural gas, methanol, and ammonia, while concurrently promoting cleaner energy sources.
To further mitigate carbon emissions, the government plans to mandate the blending of biogas with compressed natural gas (CNG) for transportation and piped natural gas for domestic use. This policy is anticipated to enhance air quality and boost the biogas industry, contributing to the circular economy. Financial support will be extended to facilitate the procurement of biomass aggregation, essential for bioenergy production. This step is likely to encourage farmers to participate in the bioenergy supply chain, creating a sustainable and profitable model for agricultural waste management.
The electric vehicle (EV) ecosystem is slated to receive a significant boost, with the government intending to expand and strengthen manufacturing capabilities and charging infrastructure. This move is expected to accelerate the adoption of EVs nationwide, reducing greenhouse gas emissions from the transport sector. In a bid to promote the use of electric buses, the government is actively encouraging their greater adoption, contributing to the reduction of urban pollution and fostering sustainable public transportation.
Arpit Mehrotra, managing director, office services, Colliers India, said, “Announcements made for supporting battery manufacturing and charging stations will boost the Electric Vehicles (EV) ecosystem. The EV space in India is likely to see investments of Rs 94,000 crore ($12.6 billion) across the automotive value chain, over the next five years. During 2023, the country recorded about 1.53 million EV registrations, a 50% YoY growth, indicating continuous growth in adoption of EVs. With an uptick in demand for EVs, the charging infrastructure market is required to grow parallelly to fulfil the demand. This is an encouraging step taken by the government as adoption of electric vehicles is imperative to tackle climate change and achieve our net zero targets.”
A new scheme focusing on biomanufacturing and biofoundry is set to be launched, aimed at promoting green growth and innovation in the biotechnology sector. This initiative is anticipated to shift the current consumptive manufacturing paradigm towards one based on regenerative principles, aligning with global trends towards sustainability.
Pritam Chivukula, co-founder and director, Tridhaatu Realty, and vice president, CREDAI-MCHI, said, “The budget’s emphasis on green initiatives, bio-manufacturing, and blue economy activities is expected to have a substantial influence on real estate markets. The promotion of sustainable alternatives such as biodegradable polymers and bio-agri-inputs creates opportunities for environmentally aware real estate construction. The Interim Budget 2024 represents a forward-thinking approach, tackling critical areas while driving the country towards a brighter, more sustainable future.”
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