Union Finance Minister Ms Nirmala Sitharaman presented the Interim Budget 2024 on February 1, 2024. Here is a progressive compilation of reactions expressed by the industry to the Interim Budget 2024. Please revisit the page for more updates. (Featured photograph sourced from Sansad TV)
Committed to sustainability
The Finance Minister’s interim budget speech charts a progressive outlook for the entire economy, with a focus on keeping all growth levers intact for sustainable, inclusive growth for all.
Starting from fiscal consolidation by aiming to reduce the deficit and better tax collection, along with strategic futuristic investment lays the foundation strong economic growth for the new financial year. To boost India’s role in today’s redefined globalized world, the budget deploys a 360 degree method – regulatory, financial & advisory support to SMEs, long-term financing at close to zero interest for private sector R&D and innovation in sunrise sectors and establishment of the three economic rail corridors (energy, cement & mines; ports and high traffic density) under the PM Gati Shakti program. The last will not only improve logistics efficiency but also contribute to reducing overall transportation costs.
We commend the government’s steadfast commitment to environmental sustainability and the ambitious goal of achieving ‘Net Zero’ by 2070. The focus on supporting offshore wind energy through viability gap funding and developing coal gasification and liquefaction capacity demonstrates a proactive approach to diversifying our energy sources. Furthermore, rooftop solar that taps into our populace and payment security mechanisms to incentivize city and state transport to adopt EV buses will help create a robust, sustainable renewable ecosystem.
Overall, we feel the interim budget can provide the required impetus to maintain sustainable growth across sectors.
—N Venu, MD & CEO, Hitachi Energy India and South Asia
Stimulus to economic growth
“We applaud the government’s emphasis on infrastructure development, particularly the PM Gati Shakti initiative involving three major railway corridor programs. This commitment, alongside the substantial increase in infrastructure spending to Rs 11.11 lakh crore for FY25, demonstrates the government’s unwavering focus on building a more efficient and connected India. Additionally, advocating for inclusive growth, the emphasis incorporating aspects like geography, gender, and grades of strata will not only span development across the nation but also alleviate poverty and bolster the economy. Striking a balance between infrastructure and social spending is crucial for fostering a self-sustainable and inclusive micro and macroeconomic development. Furthermore, the focus on leveraging India’s natural and human resources through enabling schemes aligns with our vision of making India Atmanirbhar. This holistic approach, coupled with the UDAN scheme’s expansion for new airports, directly contributes to building smart, sustainable cities, fostering regional connectivity, and stimulating economic growth—an era truly heralding Amrit Kal”.
—Amit Uplenchwar, Director, Kalpataru Projects International Ltd
Emphasis on R&D
“The budget’s emphasis on R&D is path-breaking. The substantial Rs.1 lakh crore corpus, paired with a 50-year interest-free loan, presents a significant incentive for the private sector to scale up R&D investments in sunrise domains. Implementation here will be the key to realising the full potential of this opportunity.”
—Pratik Agarwal, Managing Director, Sterlite Power
Foundation for “Viksit Bharat”
“The Interim budget 2024, presented by Finance Minister Nirmala Sitharaman, continues on India’s path of fiscal consolidation. It aims to lay the foundation for a Viksit Bharat by focusing on inclusive growth, and sustainability. Underlining this priority, the government’s focus on encouraging skilling, health, energy security, MSME growth, as well as the increased capital expenditure by 11.1%, will position the nation as a manufacturing hub and an investor-friendly country. On sustainability, the government’s commitment to achieving its net zero target is commendable. To this effect, the viability gap funding for harnessing offshore wind energy potential for an initial capacity of 1 GW will help the sector step up its pursuit of developing wind assets that will contribute to the nation’s net-zero and energy security goals. The importance placed on EV infrastructure and green energy will also drive the nation towards a more sustainable future and green Amrit Kal.”
—Rajiv Ranjan Mishra, Managing Director, Apraava Energy
Promise of growth
“The budget promises unprecedented growth for India in the coming five years, focusing on the growth pillars of green energy and infrastructure development. It has laid the foundation for a resilient and sustainable energy future. The rooftop solarisation program which aims to provide 300 units of free power every month to 1 crore houses along with an opportunity to sell surplus energy to discoms will take the solar energy program to the grassroots level and will lead to substantial savings for households. Additionally, the policy mandating phased blending of CBG for CNG and PNG will help in greening the gas supply chain.”
—S.N. Goel, Chairman & Managing Director, Indian Energy Exchange
Greater investment need in power grids
“We welcome the measures for infrastructure development and technology adoption in this Interim Budget and moreover, the last year’s massive allocation to renewable energy has already boosted the sector. However, we believe that the budget could have done more to address certain pressing challenges in the power sector. For example, there is a need for greater investment in grid infrastructure to support the integration of renewable energy sources. Additionally, more incentives for the adoption of energy-efficient technologies are the need of the hour. We hope that the government will continue to prioritize these areas in future budgetary allocations to accelerate the growth of the power sector.”
—Rajinder Kaul, Chairman & Managing Director, Sharika Enterprises
Progressive approach
“The budget announcements towards Renewable Energy showcase a progressive approach by the government. Specifically, the initiatives aimed at promoting rooftop solarization signal a strategic framework to leverage India’s substantial residential market for renewable energy adoption. Additionally, the announcement of viability gap funding for offshore wind energy projects, with a focus on capacities up to 1GW, is a welcome move. This provision addresses a critical need in propelling the growth of offshore wind energy which had gone on a flat trajectory in last few years.
While the demand market has been incentivized, relaxations in import taxes would have in parallel helped the generators achieve the targets associated with the rise in energy demand till local manufacturing stabilizes.”
—Sharad Pungalia, MD & CEO, Amplus Solar
Sharp focus on solar energy
The budget has a strong focus towards decentralized opportunities such as solar roof top, EV charging which is aimed to create a step change in sector with a strong underlying theme of inclusion of households, SMEs, and youth in the energy transition opportunities. A wider adoption of solar roof top is likely to be propelled by the scheme for 300 units free electricity every month for 1 crore household through roof top installations providing savings up to fifteen to eighteen thousand rupees annually. This along with the support towards manufacturing and charging infrastructure for EVs, is likely to create entrepreneurship opportunities for large number of vendors for supply and installation as well as employment opportunities for youth with technical skills in manufacturing, installation, and maintenance.
—Anvesha Thakker, Partner Business Consulting and National Industry Lead – Clean Energy, KPMG in India
Encouraging innovation in RE
“This is a very welcome and forward looking Vote on Account presented by the Finance Minister. The strategy laid out reflects the Prime Minister’s vision of a modern, inclusive, resilient, innovative and green India. The continued thrust on capital expenditure and reduced market borrowings will enable acceleration in private investments and employment creation. The budget balances growth with fiscal prudence.
Continued priority to achieve rapid growth of the green energy sector is clear. Announcements on viability gap funding for offshore wind energy and allocations for solar rooftop projects will support development of the whole industry. The announcement of the corpus of Rs. 1 lakh crore for R&D in sunrise sectors sets a positive tone for the future, encouraging us to accelerate our investments and innovations in renewable energy technologies.”
—Sumant Sinha, Founder, Chairman & CEO, ReNew
Pivotal step towards sustainable future
“India’s commitment to rooftop solarization and harnessing offshore wind energy marks a pivotal step towards a sustainable future. The one crore households benefiting from rooftop solar will not only experience freedom from electricity bills but also actively contribute to the nation’s green energy landscape. The provision of viability gap funding for offshore wind energy underscores a visionary path to achieving net zero by 2070. BluPine Energy applauds these initiatives as they align with our mission to drive innovation and transformative change in the renewable energy sector, and the profound impact they will have on our nation’s renewable energy landscape and our collective responsibility towards a greener, more sustainable future.”
—Neerav Nanavaty, CEO, BluPine Energy
Green gas-based economy
“The budget has laid a roadmap for ensuring a green gas-based economy in India. The policy mandating phased blending of CBG for CNG and PNG will help in greening the gas supply chain and balancing the demand-supply for clean fuels. Financial assistance for procuring biogas aggregation machinery would tremendously help in energizing the biofuel segment. We feel this budget has created a conducive environment for the trading of clean and eco-friendly biofuels, in alignment with India’s net-zero goals.”
—Rajesh Kumar Mediratta, MD & CEO, Indian Gas Exchange
Strengthening the EV ecosystem
Budget 2024 primarily functions as a vote on account, with a strong emphasis on fiscal consolidation and a retrospective focus on the past decade’s progress, rather than unveiling major new budgetary proposals.
The budget also continued to highlight the government’s commitment to addressing climate change. This was particularly evident in the decision to bolster charging infrastructure, which is expected to generate employment opportunities and accelerate the transition to electric vehicles (EVs). Additionally, the move to provide electricity through rooftop solarization stands out as a dual-benefit initiative. It not only lessens environmental impact but also alleviates financial burdens on households, embodying a model for sustainable development.
Furthermore, the budget’s focus on strengthening the EV ecosystem, through support for charging infrastructure and promotion of electric buses, marks another significant step towards transitioning to a more sustainable EV-based transportation system. These initiatives reflect the government’s ongoing efforts to align with global sustainability goals while maintaining economic stability and continuity
—Sandiip Bhammer, Founder & Co Managing Partner, Green Frontier Capital
Promoting green energy
The focus on solar initiatives in the interim budget, led by Hon’ble Finance Minister Nirmala Sitharaman, is a great move toward promoting green energy. Solar power not only ensures household electricity access but also aligns seamlessly with our enduring commitment to environmental sustainability. The ‘Panchamrit’ goals highlight the government’s dedication to strengthening resource-efficient growth, thereby supporting energy security in terms of both availability and affordability. The visionary approach of rooftop solarization benefiting one crore households is noteworthy, reflecting a holistic vision for a sustainable future. Also, the commitment to creating employment opportunities for the youth, particularly those with technical skills, resonates deeply with our objective of cultivating a skilled and empowered workforce in the energy sector. In essence, these initiatives collectively set the stage for a transformative and sustainable energy landscape, aligning with our vision for a greener and brighter tomorrow.
—Preeti Bajaj, CEO, Luminous Power Technologies
VGF for offshore wind holds potential
“We recognize the government’s visionary move in introducing Viability Gap Funding for offshore wind projects, a fairly complex endeavour in the Indian context. This initiative holds potential to open up large opportunities for the wind sector, as India marches aggressively towards its 2030 renewable energy and 2070 net-zero targets. Compared to onshore, offshore projects currently are significantly costlier from cost of energy perspective, and the VGF announced in this year’s budget will aid in lowering power generation costs to ensure power offtake from these projects, as well as instil confidence among wind players towards investing in offshore technologies. We expect the benefits to materialize more prominently in the medium to long term.”
—Devansh Jain, Executive Director, INOXGFL Group
Accelerating infrastructure momentum
“We at Otis India, would like to applaud Hon’ble Finance Minister, Smt Nirmala Sitharaman for presenting a progressive budget accelerating the momentum in infrastructure sector and for the contribution to affordable housing. The thrust on building digital public infrastructure along with the three major economic railway corridor programmes will enable multi-modal connectivity and help grow demand for new elevators. Otis India welcomes this transformative budget recognising its potential to foster holistic urban development.”
—Sebi Joseph, President, Otis India
Committed to net-zero journey
Jakson aligns seamlessly with the government’s visionary initiatives, including a substantial Rs.11.11 lakh crore infrastructure investment and the introduction of ‘Pradhan Mantri Suryodaya Yojana.’ This program aims to provide 1 crore households with 300 units of free electricity through rooftop solarization, symbolizing our shared commitment to economic growth and net zero journey. These dynamic measures not only enhance energy security and promote clean energy accessibility but also drive a tech revolution, supported by a INR 1 lakh crore corpus for R&D. Jakson is committed to this journey towards a sustainable, and inclusive future, championing synergies between innovation and economic empowerment.”
—Sameer Gupta, Chairman & Managing Director of Jakson Group.
Promoting clean energy
“The government’s unwavering commitment to fostering sustainable growth and inclusive development signifies a momentous milestone. Their dedicated focus on prioritising policies to enhance the affordability, accessibility, and availability of clean energy perfectly aligns with India’s strategic goal to establish energy efficiency as a cornerstone for the nation’s future. Optimism abounds as forthcoming reforms centre on sustainable and resilient growth, particularly in the development of the electric vehicle (EV) ecosystem. The allocated funds for charging infrastructure and the introduction of new EV buses are positioned to play a pivotal role in realising India’s ambitious net-zero goals and effectively combating climate change. It is imperative that new construction seamlessly integrates low-carbon and energy-efficient building practices to pave the way for a decarbonised built environment. AEEE stands prepared to collaborate with the government and other stakeholders, ensuring the successful implementation of these visionary initiatives.”
—Dr. Satish Kumar, President & Executive Director, Alliance for an Energy Efficient Economy
Towards a greener future
We are very pleased to find that renewable energy has been a focus area for government spending in the Interim Budget. The comprehensive plan aimed at achieving the nation’s ambitious Net Zero target by 2070 in the Interim Budget 2024 is encouraging and will steer the country towards a greener future. The honourable Finance Minister’s push for rooftop solar by providing assistance for the installation of rooftop solar systems for 1 crore households under the Pradhan Mantri Suryodaya Yojana will spur demand in the industry, and more and more people will be encouraged to opt for renewable energy.”
—Sanchit Sekhwal Goyal, Director, Su-Kam Power Systems Ltd
Holistic approach towards “green” growth
“We welcome the steps outlined by the Finance Minister in the Interim Budget 2024-25, to boost the bio fuel sector. The mandatory blending of Compressed Bio Gas (CBG) into CNG and PNG will reduce dependency on traditional fossil fuels and will promote the efficient recycling of organic waste into a valuable resources. Moreover, the launch of new schemes for bio-manufacturing and bio-foundry, along with financial assistance for biomass aggregation machinery procurement, reflects the government’s holistic approach towards promoting green growth and supporting ‘Waste to Wealth’ mission. These moves will further support CBG developers to boost infrastructure, ensuring a reliable and sustained supply of Compressed Bio Gas. Overall, the budget reinforces the government’s commitment to sustainable energy transition through concrete policies and incentives for the biofuels industry.”
—Mahesh Girdhar, MD & CEO, EverEnviro Resource Management Pvt Ltd
Accelerating the RE ecosystem
“The recently announced budget’s substantial infrastructure investment marks a significant stride in accelerating the renewable ecosystem. We anticipate dedicated allocations for crucial elements such as port infrastructure, renewable energy integration, and specialized infrastructures for green hydrogen. Notably, PM Gati Shakti’s railway corridors emerge as a game-changer for green hydrogen and its derivatives, fostering dedicated transport links between production hubs, ports, and markets. This strategic move is poised to reduce costs, enhance accessibility, and expedite India’s transition towards clean energy.
Furthermore, the government’s decision to reduce borrowing from markets is a pivotal development, unlocking opportunities for increased private investment, particularly in sectors like renewables. This shift acts as a catalyst for India’s clean energy transition, propelling us closer to a sustainable future. Additionally, the viability gap support for offshore wind and bio-based solutions holds immense promise, presenting opportunities to lower the levelised cost of green hydrogen and its derivatives. In a seemingly neutral yet strategically significant move, the budget’s stable tax and duty regime ensures a steady flow of foreign investments, particularly in critical sectors like renewable energy. This commitment to continuity prioritizes investor confidence and predictability, serving as essential pillars for fostering long-term commitments and accelerating growth in key sustainability sectors.”
—Bikesh Ogra, MD & CEO, Jakson Green
Catalyzing economic growth
“With its clear vision, sound structure, and commitment to fiscal prudence, this interim budget continues on a path towards Atmanirbhar and Viksit Bharat (Self-reliant and prosperous India). The significant 11.11 per cent increase in capital expenditure will act as a catalyst for economic rise and job creation ensuring inclusive growth for the nation (“Desh Ka Kalyan”).
Prime Minister Modi’s ambitious vision of rooftop solarisation will provide 300 units of free electricity to 1 crore households every month resulting in savings of Rs 15000 – 20,000 per month. This significant announcement promises a bright future not only for the renewable energy industry but also for numerous enthusiasts and entrepreneurs urging new employment opportunities.
The focus on women empowerment remains at the forefront of this budget recognizing the pivotal role of “Nari Shakti” in development of the nation. Initiatives like “lakhpati didi”, “mudra yojana” were significant steps in strengthening women entrepreneurship.
“First Develop India” through increased FDIs and the government’s efforts for negotiating bilateral investment treaties augur well for the Indian entrepreneurs. Also, efforts to promote green growth through bio-manufacturing is a step in the right direction to achieve our net zero targets.
By prioritizing the development of the eastern region and unlocking its potential as an engine of national growth, the government demonstrates its commitment to balanced and inclusive development across the nation.
Guided by the principles of “Reform,” “Perform,” and “Transform,” the government is navigating these turbulent geo-political times with confidence. Under its leadership, the Indian economy is poised to shine even brighter on the global stage.”
—Gyanesh Chaudhary, Chairman & Managing Director, Vikram Solar
Rural housing boost
“Government’s announcement to build two crore new rural homes under PM Awas Yojana Grameen Scheme, setting up of an Urban Infrastructure Development Fund (UIDF) under the National Housing Bank for the creation of urban infrastructure, signals a robust push for real estate growth, extending its impact beyond metros and creating exciting opportunities in tier-II and tier- III cities. The transportation infrastructure development near metro stations will further foster urban mobility and unlock investment potential.”
—Manish Mehan, CEO & MD, TK Elevator India
Efficient resources utilization
The union budget’s “Panchamrit” targets, as highlighted by the finance minister, aim to support sustainable economic growth with a focus on using resources efficiently. This is expected to boost India’s raw material capacity, especially in the manufacturing of Li-ion batteries. The commitment to strengthen the e-vehicle ecosystem through support for manufacturing and charging infrastructure shows a proactive approach to environmentally-friendly growth. By embracing economic policies for ongoing growth, the government is setting a path for a circular economy, emphasizing environmental responsibility and smart use of resources. This approach not only tackles challenges in the lithium-ion battery industry but also contributes to building a resilient and sustainable future for our nation.”
—Rajesh Gupta, Founder & Director, Recyclekaro
Sustainable initiatives
“As Budget 2024 unfolds, it brings into focus the critical role of sustainable initiatives in shaping India’s economic future. At Climate Asia, we acknowledge the government’s strategic shift towards green energy, with an impressive surge in infrastructure spending from 1.13 percent of GDP in FY 2019-20 to a projected 3.3 percent in FY 2023-24. These investments are not just fiscal figures; they represent a tangible move towards sustainable housing and energy-efficient projects. In light of these developments, our mission is to drive private investment in green infrastructure, leveraging these policy shifts to foster an eco-friendly and economically robust India.”
—Satyam Vyas, CEO & Founder, Climate Asia
