The Union Budget for 2022-23 was presented in Parliament by Union finance minister Ms Nirmala Sitharaman, on February 1, 2022. The corporate sector, industry bodies and think-tanks have generally welcomed the Budget proposals and have lauded the nation’s commitment towards clean energy transition. Here is a collection of what leaders in the power and electrical equipment industry have to say about the Budget. (Featured photograph sourced from Sansad TV)
Accelerating energy transition
“I am happy to see this year’s Union Budget laying down a blue print for sustainable development in the future. We applaud the Govt. for its consistent commitment and sharp focus on the important priorities of improving climate change and accelerating energy transition. The suggested framework around Gati Shakti (infrastructure development) and inclusive development will lay a good foundation for long-term infrastructure with an eye on short term economic and job growth. We also welcome the actions on national Digital Health mission.
The launch of the sovereign green bonds is an evidence of the Government’s active support to ‘Green’ which will significantly help reduce the carbon intensity in the years to come. For India to achieve its climate goals, financing is the need of the hour. This will require deep public-private partnerships. We at GE, have been investing in sustainable technologies for decades. We welcome the encouragement to private industry for taking up the design and development of military platforms and equipment in collaboration with DRDO. We are committed to bringing those technologies in the areas of sustainable aviation, green hydrogen, emission controls and decarbonization to India to support the country’s goals.”
—Mahesh Palashikar, President, GE South Asia
Pro-growth budget
“India delivered a pro-growth budget with a significant push to capital expenditure to boost the supply side and attract private investment. The government appears to have had its ears to the ground and covered a vast gamut of sectors in its four priority areas — PM Gati Shakti, Inclusive Development, Climate Action, and Energy Transition. Intentions have been clear – steer India toward sustainable development with a strong focus on financial support to MSMEs and expansion of emerging sectors such as solar power, EV infrastructure, railways, data centers.
Additional allocation of Rs.19,500 crore for PLI scheme, development of new-gen trains over the next three years, Rs.1,400 crore allocation for hydro and solar projects in FY23, rationalization of custom duties on select capital goods, wider coverage of single-window clearance for green projects will pave the way toward clean energy transition.
The climate-responsive budget also keeps consumers at the center – DISCOM options, skilling & employability, focus on R&D.”
—N Venu, MD & CEO, India & South Asia, Hitachi Energy
Major boost for renewables
“The Union Budget 2022 has focused on our nation’s growth with major policy announcements in the energy, connectivity, capacity building of the economy, infrastructure investment, and enhancement of the digital economy that will further contribute to the revival of the economy and ensure improved growth.
The renewable energy sector has seen a boost with the aim for domestic manufacturing of 280 GW of installed solar capacity by 2030. This is also in line with India’s sustainability goals that we are fast meeting. There is also an additional allocation of Rs 19,500 crore for PLI for the manufacturing of high-efficiency modules, with a priority to fully integrate manufacturing units to solar PV modules. This will further align with the objectives of Atmanirbhar Bharat.
The Production Linked Incentive Scheme (PLI) is further expected to create 60 lakh new jobs and additional production of 30 lakh crore during the next five years and this will definitely help in building more confidence in the economy.
Budget 2022 is strong and has policies focusing on accelerating the economy with innovation, sustainability, and enhancement of the digital economy. With an amplified focus on energy, connectivity, and infrastructure investments we are surely looking at larger investment and a positive growth in FY2022-23.”
—Dinesh Aggarwal, Joint Managing Director, Panasonic Life Solutions India Pvt Ltd
Four-pillar focus
We welcome the growth-oriented budget with a focus on the four pillars – productivity, climate action, financing investments, and PM Gati Shakti plan. These are concrete steps in the right direction, and over time should positively impact the economy. The increased capex outlay of Rs.7.50 lakh crore further demonstrates the intent of the government to create the necessary impetus for the economy. Stability in tax policy is also a welcome step.
—Sunil Mathur, Managing Director and Chief Executive Officer, Siemens Ltd
Capex-led Budget
I welcome the forward-looking, capex-led Budget 2022, with a sharp 35 per cent increase in outlay. A strong focus on improving the safety of Indian Railways, faster implementation of metro rail systems, infrastructure status for data centres, along with emphasis on PM GatiShakti with significant allocation towards Jal Jeevan Mission, Affordable Housing, BharatNet and building 100 Cargo Terminals for multimodal logistics facilities augur well for KEC International Ltd. and our well-diversified businesses.
Further, initiatives such as the use of Surety Bonds as a substitute for bank guarantee, a cap on Surcharge of AOPs/ consortiums at 15 per cent as against 37 per cent earlier and an end-to-end online e-Bill System to enhance transparency are steps in the right direction for EPC contractors such as KEC.
—Vimal Kejriwal, MD & CEO, KEC International Ltd
Energy efficiency and energy transition
The FY23 Union Budget lays strong impetus on sustainable development. Sustainability has steadfastly become an urgent priority and the proposal to issue sovereign green bonds for building green infrastructure will go a long way in creating a low carbon future and reducing carbon intensity of the economy. This is in line with the government’s commitment on climate action at COP26. The budget also emphasizes on energy efficiency and energy transition for reducing emissions. Saving energy is an important aspect of energy management. Hence, energy efficiency and savings measures will be promoted. This will be done in large commercial buildings through the Energy Service Company (ESCO) business model. It will facilitate capacity building and awareness for energy audits, performance contracts, and common measurement & verification protocol. The proposal of thematic funds for mobilising blended finance with government share capped at 20 per cent will also allow fund mobilization for emerging sectors like digital economy and climate action.”
—Anil Chaudhry, MD & CEO, Schneider Electric India Pvt. Ltd
Growth-oriented
“The 2022 budget has a remarkable approach towards growth orientation. With a substantial focus on housing and infrastructure development, it provides a promising outlook that will provide a much needed boost to the economy. The provision of chemical free agriculture is good move towards health improvement and it will also help in increasing exports. The #PMGatiShakti master plan will definitely aid in reducing logistics costs in the long term. The support for urban capacity is going to improve efficiency and will also provide some relief in reducing the cost of real estate which is the need of the hour in order to afford a good living.”
—Shreegopal Kabra, Managing Director & Group President, RR Global
Futuristic approach
“The Budget 2022 has a strong futuristic approach with considerable focus on education, sustainability, agricultural growth and women empowerment. It promotes overall economic development including the non-metro cities as well and an overall improvement in the standard of living. The affordable housing scheme is a huge step by the government that will impact the lives of 80 lakh families aspiring them to have their own houses in future. This will boost economic growth and will improve the overall living standards of the people. The support for urban capacity building will open up new possibilities for the citizens in non-metros thereby encouraging people to settle in these cities with a better quality of life. The expansion of National Highway network will help smoothen transportation and reduce the logistic costs thereby also providing opportunities for growth to the smaller towns nearby. The Green Energy & Clean Mobility provision will certainly promote better health, ease of living and reduce mobility cost.”
—Kirti Kabra, Director, RR Global
Growth-oriented and forward looking
“It is a growth oriented and forward looking Budget. The ambitious goal of 280 GW of installed solar capacity by 2030 has been set with an additional allocation of Rs.19,500 crore for manufacturing solar PV modules, in the power and energy sector I believe the Budget 22 will increase the growth and will help in ramping up domestic capacity. This is a highly sustainable and green energy choice. The government’s concern towards standardising the domestic manufacturing of electronic smart meters, wearable devices and hearable devices is a boon for India to become an electrical manufacturing hub. The proposal of surety bonds as a substitute for bank guarantee is highly welcomed. Furthermore, Rs.48,000 crore are allocated for 80 lakh houses to be completed both in rural and urban areas which is a huge step towards the upliftment of society.”
—Gautam Seth, Joint Managing Director, HPL Electric & Power Ltd
RE segment gaining prominence
“The sheer inclusion of Renewable Energy (RE) and cleantech in the Budget 2022-23 speech by the Hon’ble FM is a clear indicator of the increased prominence that the RE segment has had in the last few years! The sector has grown by leaps and bounds, thus establishing a formidable position.
The focus on EV and Energy Storage Solutions (ESS) is clearly the need of the hour. The introduction of battery swapping initiative is in line with our expectation for a while. Interoperability of energy storage is going to revolutionise the consumption of RE in India. It is not only going to improve logistics for EV users, but also create a micro-economy – that will create budding entrepreneurs in the segment.
Moreover, the hon’able FM has granted Energy Storage Solution (ESS) and grid scale battery system an ‘infrastructure’ status, which has been done largely to boost demand. This move is bound to attract better financing options for the said segment, increase scalability, which in-turn will eradicate the barrier of discoms not opting for RE power on account of intermittent supply.
On the accountability front, I truly hope that the forward-looking move by the Central govt ministry to introduce end-to-end online e-Billing system is trickled down and implemented at central agencies such as SECI and IREDA. This will better the payment cycles and improve the financial standing of the power generation companies”
—Animesh.A.Damani, Managing Partner, Artha Energy Resources
Green energy transition
“Budget 2022 has clearly laid a major focus on the green energy transition, reducing carbon footprint, and inclusive economic growth. As we move towards a greener economy, the role of Distributed Renewable Energy as a catalyst in the empowerment of MSMEs, job creation, and reforms in agriculture will be crucial. New initiatives to encourage productive use of clean energy in rural areas driven by DRE can be of great value to the rural as well as the national economy.”
—Jaideep Mukherji, CEO, Smart Power India
De-bottlenecking logistics
“The logistics sector is a critical enabler in achieving the goal towards becoming a $5 trillion economy. The implementation of the National Logistics Policy will aid in the elimination of several bottlenecks in the supply chain industry and chart a roadmap for a streamlined and scalable future for enterprises, industries and the greater nation. Furthermore, the development of 100 cargo terminals under the Prime Minister Gati Shakti scheme is a positive step that will not only help the industry grow but will also provide more job opportunities for our country’s youth. We are hopeful for great developments and defining new possibilities with this announcement.”
—Javed Ahmad, Sr. Vice President, Global Supply Chain, International Region, Schneider Electric
Promoting growth through investments
“The Budget for FY23 holds a lot of promise for the economy. The focus on the logistics sector through the PM Gati Shakti plan will give a fillip to the economy. Logistics costs in India count among the highest in the world. Creation of infrastructure is the best way to reduce the costs and introduce competitiveness in the economy to serve both the domestic market and exports. The initiative of spurring investments from the private sector by taking the lead through government investments of Rs. 7.5 lakh Cr. is laudable. The PLI scheme outlay for solar modules will support the solar power generation projects which are currently facing steep cost increases and supply constraints. Support for domestic manufacture of capital equipment by doing away with duty exemptions is also a welcome step. The economy is on a slow recovery path. This budget seeks to accelerate the growth through investments.”
—Anil G. Verma, Executive Director & President, Godrej & Boyce
Financing of green infra
“The announcement of the Finance Minister to issue sovereign green bonds to mobilize resources required for green infrastructure will certainly help boost the financing of clean energy projects, thereby providing an impetus to the Indian energy sector. With Approved Module Manufacturer List becoming applicable from April 2022, the allocation of an additional Rs.19,500 crore under PLI scheme for solar would help create much needed manufacturing ecosystem. The enhanced focus on electric mobility is showcasing the clear desire to mainstream this emerging industry. Overall, the budget is giving clear direction for India to meet its COP26 commitments by 2030.”
—Manish Chourasia, Managing Director, Tata Cleantech Capital Ltd
Fostering innovation
“Budget 2022 has given indigenous manufacturers several reasons to cheer. Implementing 40 per cent BCD on solar modules and the additional allocation of Rs 19,500 crore for PLI for solar PV module manufacturing will ensure the growth of the entire domestic manufacturing ecosystem. The application requirements should be tweaked to ensure that MSMEs also benefit from the scheme. All of these measures will result in a more robust domestic module supply, increased confidence in Indian solar modules and reduced reliance on imports while furthering our aim to achieve an Atmanirbhar Bharat. As a next step, the government needs to define measures to be taken in the R&D space to foster innovation and help companies stay ahead of the technology curve.”
—Bharat Bhut, cofounder and director, Goldi Solar
Addressing critical challenges
The key decisions made on the renewable energy front illustrated in the Union Budget 2022 precisely addresses the most critical challenges halting India’s speedy transition to a clean new era. The allocation of additional Rs.19,500 crore to the Production Linked Incentive (PLI) for the development of high-efficiency solar modules, thoughtful policies & action plans, supporting incentives for green bonds would not only accelerate our pace to achieve the 2030 target of 280 GW of installed solar capacity but would also help deliver on the 2070 net-zero emissions target commitment made by PM Narendra Modi at the COP26 summit held last year in Glasgow and play a pivotal role in tackling the global crisis of climate change.
—Raman Bhatia, Founder & Managing Director, Servotech Power Systems Ltd
Centered around nation’s progress
“The Union Budget for the fiscal year 2022 is quite robust and centered around the nation’s progress, with a focus on increasing economic efficiency and infrastructure growth. The budget is looking forward to focusing on a long-term plan for the country with digitization, urban development, and sustainability at its core. Allocating Rs.48,000 crores for PM Awas Yojana will help to achieve the Prime Minister’s vision of Housing for All. Also, 60,000 houses will be identified as beneficiaries for PM Awas Yojana in rural & urban areas to further ensure that more and more homebuyers get to avail of this benefit. The government’s aim to create 6 million new jobs over the next 5 years will enable the growth of residential as well as commercial sector across the country. However, a time extension of the credit-linked subsidy scheme would have given affordable and mid-income homebuyers the much-needed financial elbow room to make a purchase. Furthermore, adding a standard definition for 60m and 90m affordable homes would have given a bigger boost to the housing industry.”
—Manish Mehan, CEO & MD of TK Elevator India
Big push to EV space
“The government’s fidelity to the zero fossil fuel vision has been reassuring through the Union Budget 2022. The push towards adoption of clean energy will boost confidence of enterprises in the EV space and will further propel investments in the sector in the next five years.
With e-mobility in the spotlight, considering the lack of charging infrastructure in the country, the impetus given to battery swapping will fuel the speed of adoption of EV and will help us alleviate mental blocks pertaining to its viability and usage.
Additionally, the support towards the startup segment with the extension of the tax incentives for another year, in lieu of the effects of the recent pandemic, will provide a nurturing environment to smaller players, mostly domestic auxiliary support suppliers like batteries, component manufacturers etc.”
—Pratik Kamdar, Co- Founder, Neuron Energy
Digital innovations
“Budget 2022 has laid a strong emphasis on promoting digital and technological innovations across sectors. The three identified focus areas of technology led development, energy transition and climate action will create a conducive environment for deep tech innovators operating at the intersection of technology and energy to flourish in the country. An allocation of Rs.19,500 crore towards solar energy PLI schemes will spur large-scale demand for the next level of stationary-energy-storage capacities. This will unravel an entirely new ecosystem comprising of battery technology innovators, energy storage platforms, as well as manufacturers and service providers across the energy value chain. At Offgrid Energy, we are particularly excited at prospects unfolding for deep tech companies in the energy storage space.”
—Tejas Kusurkar, Co-founder & CEO, Offgrid Energy Labs
In sync with EV vision
“We welcome Union Budget 2022-23 for its focus on the growth of renewable energy and especially the electric mobility through the announcement of the battery swapping policy that will surely boost the EV adoption in the country. All these initiatives are in sync with the government’s endeavour to encourage the use of electric vehicles in both personal and commercial segments with aim to realise the vision of making India a 100 per cent e-vehicle nation by 2030.”
—Anshul Gupta, Director, Okaya Power Pvt Ltd
