Budget 2022: Big boost to renewable energy and distribution!

The government plans to allot Rs 1,400 crore for 123 MW hydro and 27 MW solar projects in India.

Finance Minister Nirmala Sitharaman, in her Budget speech, announced a huge allocation for solar and hydro energy for the financial year 2022-23.  

The government plans to allot Rs 1,400 crore for 123 MW hydro and 27 MW solar projects in India. The government will create Rs 3 lakh crore funds over five years to assist power distribution companies to reform the transmission & distribution of energy. Furthermore, the government also announced National Hydrogen Mission to facilitate the production of hydrogen from green power sources.  

The key point in the Budget was the announcement of the PLI scheme for Rs 4,500 crore for high-efficiency solar PV modules. Moreover, the additional allocation of Rs 1,000 crore has been provided to the Solar Energy Corporation of India.   

The FM further added that the government is concerned about the drastic climatic change in the world. Thus, several short-term and long-term actions are into consideration. Low Carbon development strategies are an important reflection of the government’s strong commitment. This will open huge opportunities and boost employment.   

Along with this, ‘Battery Swapping Policy’ was a key announcement in regard to the adoption of cleaner fuel usage for transportation. It will be brought out in FY 2022-23 and operating standards would be formulated. This will bring battery and EV adoption to the country.   

With this, Nifty Energy is currently trading half a per cent higher. However, IOC and ONGC have slipped over 2 per cent each. Hindustan Petroleum plummeted about 5 per cent. However, Tata Power has gained over 1.5 per cent on the back of solar news. Reliance Industries is up by about 1.25 per cent.