Budget a watershed moment in India's clean energy transition: Experts

Industry experts hailed steps for boosting clean energy like nuclear mission, incentives for critical minerals and renewable equipment in the Budget presented on Saturday by Union Finance Minister Nirmala Sitharman.

Sitharaman announced a Rs 20,000-crore nuclear mission and duty exemptions for crucial minerals and capital goods for electric vehicles to step up energy transition.

Rajat Verma, Founder & CEO, LOHUM said, 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."  The elimination of import duties on lithium-ion battery scrap, cobalt powder, and an array of critical mineral wastes unlocks unprecedented opportunities.

Coupled with the duty exemption expansion to 63 additional capital goods for EV and mobile battery production, this creates a robust foundation for India's manufacturing renaissance, he opined.

The landmark Rs 20,000 crore investment in private-sector R&D for emerging technologies signals a transformative shift in building a sustainable critical minerals ecosystem, Verma said.

Devansh Jain, Executive Director, INOXGFL Group, "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."  By fostering domestic value addition in solar PV cells, EV batteries, motors, controllers, electrolyzers, wind turbines, high-voltage transmission equipment, and grid-scale batteries, the budget strengthens India's clean energy ecosystem, he stated.

Investments in offshore wind capacity, green hydrogen production, and hybrid renewable projects will drive innovation, job creation, and economic growth, he opined.

Sunil Mathur, Managing Director and Chief Executive Officer, Siemens Ltd said that the Budget 2025 announcements are a shot in the arm for consumption, which will in turn drive demand and then manufacturing in the private sector.

The National Manufacturing Mission, the focus on clean technology and measures to support Start Ups and MSMEs are welcome steps, he said.

With a 10 per cent increase in Capex spending in infrastructure over the revised estimates, the Government stays on course in its commitment of building a world class infrastructure in the country, he added.

Bikesh Ogra, MD & CEO, Jakson Green said," Crucially, the budget emphasizes power sector reforms, incentivizing states to modernise 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 catalyse investments in RE projects."  The proposed amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act, along with greater private sector participation, are positive steps, he said.

The National Critical Minerals Mission is a vital initiative, securing access to critical minerals like lithium and cobalt is essential for manufacturing RE technologies and ensuring India's energy security.

Focusing on exploration, mining, and processing of these minerals is a proactive approach, he noted.

Saurabh Kumar, Vice President - India, GEAPP said, "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."  Varchasvi Gagal, Managing Director & CEO of Datta Infra hailed initiative to promote solar cell manufacturing in the Union Budget 2025.

He views this move as a strategic step towards creating a robust manufacturing ecosystem in India, supported by the Production-Linked Incentive (PLI) scheme.

According to him, this initiative will have a double impact. Firstly, it will enhance India's self-reliance in solar cell production, aligning with the government's vision of Atmanirbhar Bharat.

Secondly, it will significantly accelerate the country's progress towards achieving its ambitious 500-gigawatt renewable energy target by 2030.

By promoting in-house module assembly and cell manufacturing, India can reduce its dependence on imports and develop a sustainable renewable energy ecosystem, he noted.

Founder & MD, Servotech Renewable Power System Raman Bhatia said that the focus on incentivizing electricity distribution reforms and augmenting transmission capacity is a crucial step towards strengthening the power sector, which is fundamental for the growth of renewables and EVs.

The inclusion of 35 additional capital goods for EV battery manufacturing is a significant boost to domestic lithium-ion battery production, a critical component for the EV sector, he stated.

The proposed National Manufacturing Mission, with its focus on "Make in India" and clean tech manufacturing, including solar PV cells, EV batteries, and other key components, signals a strong commitment to sustainable industrial development, he opined.