Budget 2024: Update on Automobile and Renewable Energy Space

Here are the Automobile and Renewable Energy industry provisions included in the Interim Budget 2024.

Finance Minister Nirmala Sitharaman, on Thursday, February 01, 2024, made various announcements during the Interim Budget session of 2024 on upcoming development in the Oil, Gas & Renewable and Auto sector.

In pursuit of government’s commitment to achieve 'net-zero' emissions by 2070, a series of strategic measures are going to be implemented. Firstly, the government is aiming to facilitate the harnessing of offshore wind energy potential by offering viability gap funding for an initial capacity of one gigawatt. Secondly, it is also planning to take a significant step towards sustainability involves establishing coal gasification and liquefaction capacity amounting to 100 metric tons by the year 2030.

This initiative is designed not only to enhance domestic production but also to alleviate dependence on imports for natural gas, methanol, and ammonia. Additionally, government is also planning a phased approach towards mandatory blending of compressed biogas (CBG) in both compressed natural gas (CNG) for transportation and piped natural gas (PNG) for domestic purposes is slated to be mandated. Lastly, recognizing the importance of biomass, financial assistance will be extended for the procurement of biomass aggregation machinery, bolstering the overall collection process.

In the Automobile space, government is planning to make electric vehicles (EVs) more widespread and robust by helping with manufacturing and charging infrastructure. It is aiming to encourage more electric buses for public transportation, ensuring secure payment methods. This shows a commitment to making electric vehicles more accessible and promoting environmentally friendly transportation options.

From Energy Space the names are Power Grid Corporation OF India Ltd, Indian Oil Corporation Ltd, Bharat Petroleum Corporation Ltd, NTPC Ltd and from the Auto and Auto Ancilliaries space Maruti Suzuki India Ltd, Eicher Motors Ltd, Motherson Sumi Wiring India Ltd, were some of the Top Gainers today.

Disclaimer: The article is for informational purposes only and not investment advice.