Energy transition fund in crude oil sector unlikely to make return

Petroleum ministry had requested to reinstate the fund in Union Budget

A mega fund for energy transition in the crude oil sector, earlier promised and subsequently scrapped, is not expected to return anytime soon, officials from the Ministry of Petroleum and Natural Gas have said. 

The fund, intended to focus on investments in new-age fuels — such as green hydrogen, ethanol, and other biofuels — had been requested to be reinstated by the petroleum ministry in the upcoming annual Budget. The Budget for 2023–24 (FY24) initially earmarked a capital outlay of Rs 30,000 crore for priority investments in projects aimed at energy transition, energy security, and achieving net-zero emissions by 2070.