Union Budget 2025 has reaffirmed government’s plan to speed up nation’s switch to clean energy. The power sector is recognized as an essential component in this transition which will aid in economic growth and competitiveness.
Key Highlights of the Union Budget:
- The government increased solar sector funding to show its ambition to boost solar power generation.. The allocation for the total solar sector has gone up from ₹150.61 billion to ₹242.24 billion
- Customs duties on solar equipment has been reduced to 20% so as to build Indian solar PV competitiveness and domestic manufacturing.
- This budget has eliminated all custom duties for critical minerals that into lithium-ion batteries. They took this action to enhance local manufacturing while generating additional employment opportunities. Before the exemption lithium-ion battery waste together with cobalt powder and lead and zinc were subject to a 5% duty.
- Central governments proposed to expand the exempted items list with 35 capital goods. These goods form the foundation of lithium-ion battery manufacturing so will enhance domestic EV battery production. The government also plans to decrease production expenses and foster domestic manufacturer growth through tax exemptions for these items.
- The government has introduced incentives in the power sector through reforms to enhance distribution companies’ financial stability and operational productivity.
- The government plans to revise the Atomic Energy Act to attract private companies into nuclear power facilities. A new Nuclear Energy Mission was launched through a budgetary investment of ₹20,000 crore to develop small modular reactor, aiming to operationalize five indigenously developed reactors by 2033.
- The National Critical Minerals Mission received ₹410 crore from the government budget to improve critical mineral production within the nation. The financial resources will fund the creation of domestic recycling facilities while protecting worldwide mineral resources.
Through the union budget 2025 nation has demonstrated its dedication to develop leadership in clean energy and technology with a focus on economic growth, employment creation and environmental sustainability.
Reference- The Hindu, Press Information Bureau, Mercom India, Economic Times, NDTV, Business Today