Budget 2022: Renewable energy stocks surge as government announces additional funds under PLI Scheme

This is on track with the government’s constant effort to cut India’s total projected carbon emission by 1 billion tonnes by 2030.

Budget 2022-23 is observed to be growth-inducing and does give a significant push to increase capital expenditure. The attention on boosting manufacturing while emphasising areas such as startups, modern mobility, and clean energy, shows the FM has prioritised long-term growth. 

On Tuesday, the shares of companies that are into the manufacture of clean energy zoomed after Finance Minister Nirmala Sitharaman announced additional funds under the production linked incentive (PLI) scheme. 

To facilitate domestic manufacturing for the ambitious goal of 280 GW of installed solar capacity by 2030, an additional allocation of Rs 19,500 crore for PLI for manufacturing of high-efficiency modules with priority to fully-integrated manufacturing units to solar PV modules will be made.   

This is on track with the government’s constant effort to cut India’s total projected carbon emission by 1 billion tonnes by 2030. The PLI scheme typically provides incentives to companies for enhancing their domestic manufacturing. 

Reacting to this announcement, the stocks of Adani Power, Tata Power, Suzlon, and other renewable energy stocks are trading in the positive territory.