Budget 2026-27: Here are the key challenges for India's green push

Renewable energy developers flag transmission bottlenecks, weak DISCOM finances and high borrowing costs, seeking Budget support for grids, storage and cheaper green finance

Key challenges

• Transmission constraints, delays in inter-state connectivity, and weak financial position of Distribution companies (DISCOMs) continue to affect project timelines and bankability
• Rising global interest rates have also increased the cost of capital for infrastructure-heavy renewable projects
• Execution continues to be a challenge despite strong policy backing

Industry ask

• Higher allocations for inter-state transmission systems and green energy corridors.
• Policy support to strengthen local manufacturing and value-chain in Renewable Energy technologies and Battery Energy Storage Systems 
• Extension and expansion of Production Linked Incentive Schemes to include storage and balance-of-system components
• Improved access to low-cost, long-tenor green finance, including blended finance structures