Union Finance Minister Ms Nirmala Sitharaman presented the Union Budget 2024-25, her seventh straight budget, on July 23, 2024. Here is a collection of reactions from industry captains. (Featured photograph is a video-freeze sourced from Doordarshan India)
Boost to InvITs and REITs
“We welcome this significant change in rationalisation of the long term capital gain taxation for Business trusts in this budget. InvITs/REITs getting taxed at parity with equities will enhance their attractiveness for investors and will strengthen their position as platforms providing superior risk adjusted returns. We believe that this will also enable InvITs and REITs to become part of stock exchange indices, which will add significant liquidity and momentum.”
—Harsh Shah, CEO, IndiGrid:
Towards long-term energy security
“As a leader in the renewable energy sector, we feel that the recent budget announcement is an acknowledgement of the industry’s huge potential in terms of meeting India’s global sustainability commitments, ensuring the nation’s long term energy security, and providing access to affordable and clean power source for the people. We commend the government’s move to support energy transition by expanding the list of exempted capital goods for use in the manufacture of solar cells and panels in the country. The PM Surya Ghar Muft Bijli Yojana which involves installation of rooftop solar plants to enable one crore households obtain free electricity is a step in the right direction and shall promote a more sustainable future. We also welcome the government’s focus towards up-skilling 20 lakh youth over a 5-year period and upgrading 1000 Industrial Training Institutes.”
—Amit Jain, Global Chief Executive Officer, Sterling and Wilson Renewable Energy Group
Pathways to energy transition
Energy transition is at keystone for such reliable inclusive economic growth. The government recognized the same with its focus on developing many pathways to energy transition; from advanced ultra super critical thermal power plants, modular nuclear reactors, to fiscal support of pumped storage and rooftop solar and tax revision of components in the solar value chain. In addition, engagement with private entities in the energy value chain – be it inducing a shift of targets from energy efficiency to emissions, PPP in R&D around new energies, easing access to key minerals or introducing taxonomy for climate finance – are tangible steps towards taking everyone along in the journey to net zero.
—N Venu, MD & CEO, India & South Asia, Hitachi Energy
Continuation of reforms
“We are pleased to see the continuation of reforms. As the government emphasizes the 9 priority sectors for the next 5 years, the solar sector has been at the forefront of the government’s efforts to combat climate change and reduce reliance on traditional energy sources. Furthermore, the introduction of the PM Surya Ghar Yojana is encouraging, as it aims to add 1 crore more households by providing 300 units of free electricity every month.
One positive aspect of this budget is the initiatives to provide financial support for MSMEs to shift to cleaner forms of energy, which will accelerate the growth of solar modules. The government will further facilitate investment-grade energy audit in 60 clusters, with plans to increase to 100 in the next phase. We are confident that with adequate support granted by the central government, state government would equally support renewable energy sector to take the nation towards Vikshit Bharat.
—Vinay Thadani, Director & CEO of Grew Energy Pvt Ltd
Next generation of reforms
“We welcome the Government’s consistent approach towards fiscal consolidation, supporting capex in infrastructure by reconfirming the allocation of Rs.11.11 lakh crore in the Budget as also additional allocations towards improving Urban and Rural Infrastructure. We also welcome the Government’s focus on employment generation, skilling, Woman empowerment, MSMEs and climate change mitigation as well as their encouragement to the States to carry out land and labour reforms and improve Ease of doing Business further. We believe this Budget paves the way for the next generation of reforms which we are confident will lead India to its deserved place of being Viksit Bharat.”
—Sunil Mathur, MD & CEO, Siemens Ltd
Committed to energy security
“The government’s commitment to energy security and sustainability is evident in today’s announcements. They are focusing on employment and sustainability with a policy document on energy transition pathways. The auction of offshore mineral blocks will leverage existing exploration efforts, providing essential metals like lithium, crucial for reducing carbon footprint. Introducing green hydrogen into our manufacturing processes will significantly lower our carbon impact. Since hydrogen is part of our raw materials, this change is vital. Coal gasification will enhance self-sustainability and reduce import dependency. We are committed to ensuring that all our practices support a reliable and eco-friendly mining supply chain. These initiatives collectively demonstrate our dedication to a sustainable and resilient future for India.”
—Sanjay Choudhari, Chairman, SBL Energy Ltd
Customs duty exemption is a prudent measure
“As anticipated, the 2024 union budget highlights the priority given to the solar and renewable energy sectors. Notably, the PM Suryaghar Muft Bijli Yojana, which aims to install ten million rooftop solar panels, stands out as a significant advancement. This initiative could greatly benefit India’s Solar PV module manufacturers. Furthermore, removing solar glass, glass, and copper wire connectors from the custom duty exemption list is a prudent measure. This decision is crucial to supporting the burgeoning domestic industry. Nevertheless, additional efforts are needed to accelerate the full development of manufacturing capabilities, for the entire manufacturing process (that is from polysilicon manufacturing to module assembly), which requires urgent support in areas like labour regulations, technology imports, land, and infrastructure. Swift action on these fronts is essential for India to meet its ambitious domestic production targets amidst numerous ongoing projects. Pumped storage for power is another vital area with the potential for substantial savings and more efficient power generation utilization. We expect the new policy introduced by the Finance Minister in today’s budget to attract further investments and create new opportunities for manufacturers.”
—Visweswara Reddy, Chairman & Managing Director, Shirdi Sai Electricals Ltd Group
Strong commitment to clean energy
“The Union Budget 2024 has positioned India as a frontrunner in the global solar energy landscape. By allocating a substantial Rs. 7,327 crore for solar projects and introducing initiatives like the PM Surya Ghar Muft Bijli Yojana, which aims to provide free electricity to one crore households, the government has demonstrated a strong commitment to clean energy. This budget is a catalyst for the growth of the Indian solar industry, empowering millions of households with access to affordable and clean electricity. Moreover, by supporting ancillary sectors like pump storage and creating a conducive environment for innovation through tax incentives for solar cell and panel manufacturing, the budget has laid a robust foundation for India’s energy transition.”
—Gyanesh Chaudhary, CMD, Vikram Solar Ltd
Promoting niche areas in RE ecosystem
“Energy security and infrastructure have been highlighted as top priorities in the budget proposal by the Hon’ble Finance Minister. Alongside the allocation of INR 11 lakh crore for capital expenditure, the government has pledged to maintain strong fiscal support for infrastructure investment. The provision of INR 1.5 lakh crore for long-term interest-free loans to states for infrastructure development is a positive announcement that will significantly boost state-level projects. It is encouraging to see the government promoting niche areas in the renewable energy ecosystem, such as pumped storage hydro projects and modular nuclear reactors. Moreover, the commitments to enhance private investment in the sector through viability gap funding, enabling policies and regulations, and a market-based financing framework will attract private capital and stimulate business growth within the domestic market. A big thumbs-up to this futuristic budget!”
—Amit Uplenchwar, Director, Kalpataru Projects International Ltd
Enhancing ease of doing business
“We appreciate the Budget’s efforts to enhance ease of doing business through favourable policies. The substantial investment of Rs. 26,000 crores in the development of Eastern India will attract more industries to the region. With a capital expenditure of Rs. 11,11,111 crores and the crucial development of the industrial node at Gaya on the Amritsar-Kolkata industrial corridor, the manufacturing sector will receive a significant boost, ensuring seamless end-to-end production.
The CREDIT GUARANTEE Scheme for MSMEs in the manufacturing sector, offering coverage of up to Rs. 100 crores, will further support the sector. We also welcome the exemption of customs duty on 25 critical minerals to benefit strategic sectors.
Overall, with favourable and inclusive employment policies and a focus on robust infrastructure development, we believe this Budget will pave the way for the country’s ambition of becoming “Viksit Bharat” by 2047.”
—Dr. Kapil Garg, Chairman & Managing Director, Oilmax Energy Pvt Ltd
Supporting “Vocal for local”
The PM Surya Ghar Muft Bijli Yojana has been launched to install rooftop solar plants, providing free electricity up to 300 units per month to 1 crore households. Achieving 1.28 crore registrations and 14 lakh applications through the scheme is a remarkable feat indeed. We at Gautam Solar are aligned with the Prime Minister’s vision of “Vocal for local,” which opens new growth avenues for indigenous players and are committed to supporting the country’s renewable energy goals by employing our capacities for optimal returns
—Gautam Mohanka, CEO, Gautam Solar
Opening avenues for global expansion
“The Union Budget 2024 is a major milestone for the nation, fostering economic growth, infrastructure development, and energy independence. The simplified rules for foreign direct investment and overseas investment will open new avenues for global expansion, attract international investments, and enhance our global footprint. Jakson is leveraging these opportunities to drive innovation and expand globally. These measures will advance the renewables sector, and help combat climate change. This budget marks a transformational shift in the Indian energy landscape. Jakson is dedicated to advancing a sustainable and inclusive future, fostering innovation, and driving economic empowerment.”
—Sameer Gupta, Chairman & Managing Director, Jakson Group
Towards energy independence
“The announcement of support to Bharat Small modular reactors is one of the important steps towards energy independence and climate sustainability via transformative nuclear energy along with impetus on existing alternative and renewable energy sources.”
—Dr Ranjeet Mehta, Executive Director, PHDCCI
Towards a greener future
“Solar energy plays a crucial role in India’s aspirations to generate 500 GW of renewable energy by 2030 given that it is a vital component in the country’s efforts to reduce dependence on fossil fuels and combat climate change. The Union Budget 2024-25 underscores a pivotal commitment to energy security and sustainability. The Finance Minister’s announcement of a forthcoming policy document on energy transition pathways is a significant step towards a greener future. The introduction of the PM Surya Ghar Muft Bijli Yojana is a transformative initiative while investing in rooftop solar systems representing a significant financial commitment by the Government. With 1.28 crore registrations and 14 lakh applications already recorded, this achievement reflects a robust public response and sets a promising precedent for sustainable energy adoption in India.”
—Sachidanand Upadhyay, MD, Lord’s Mark Industries Ltd
Empowering youth
The budget’s emphasis on providing skilling programmes will empower the youth in obtaining quality employment opportunities. We appreciate government’s move to reduce the corporate tax for foreign companies from 40 per cent to 35 per cent. This endeavour will improve the overall business environment, making it conducive to foreign direct investments into the country which will create more employment opportunities for the youth and stimulate economic growth. The Angel Tax abolition would also super charge the startup ecosystem”.
— Meenu Singhal, Regional Managing Director, Socomec Innovative Power Solutions, Greater India.
A boost to start-ups
“The focus on job creation with three innovative employment-linked schemes is timely. The abolition of angel tax will give a big boost to our startups and young entrepreneurs who are the job creators of the future. The commitment to speed up IBC resolution will lead to 12000 businesses restarting operations and many more jobs. I am also delighted to see the announcement related to Critical Minerals Mission. India must explore, mine and process these metals of the future domestically.”
—Anil Agarwal, Chairman, Vedanta Ltd
Visionary and forward-looking
“We extend our heartfelt congratulations to the Government of India for presenting a visionary and forward-looking Budget for 2024-25. This year’s budget outlines key priority areas, underscoring a commitment to employment and skill development, inclusive growth, manufacturing expansion, urban development and infrastructure enhancement. The budget has proposed an impressive Rs.2.66 lakh crore for rural development, focusing on infrastructure and manufacturing support. The commitment to constructing three crore houses under the PM Awas Yojana in both rural and urban areas highlights a strong dedication to inclusive development. We look forward to aligning our efforts with these transformative initiatives and contributing to the nation’s progress.”
—Anil Rai Gupta, CMD, Havells India
Pragmatic and progressive
“The FY25 budget is pragmatic and progressive with adequate focus on energy transition, which is crucial to build a sustainable future. The response to the PM Surya Ghar Muft Bijli Yojana is heartening and we are confident that solar rooftops will be adopted on a mass scale in the coming years. The budget has further strengthened the domestic solar manufacturing industry by expanding the list of exempted capital goods for use in production of solar cells and panels. The budget’s proposal to not extend the exemption of customs duties for solar glass and tinned copper interconnect will also boost the domestic solar equipment ecosystem. Importantly, the government’s proposal to do away with customs duty on 25 critical minerals will promote manufacturing in emerging segments like battery storage.”
—Prashant Mathur, CEO, Saatvik Energy Pvt Ltd
Due emphasis on energy transition
“The budget’s emphasis on energy transition and decarbonisation of hard-to-abate sectors is commendable. Emission goals for hard-to-abate industries, and promoting pumped storage projects, will catalyse this transition. Implementation here will be the key to realising the full potential of this opportunity.”
—Pratik Agarwal, Chairman, Serentica Renewables
Towards sustainability
At EverEnviro, we welcome the special focus on sustainable and resilient agriculture and energy security. The budget presents a promising roadmap towards available, accessible, and affordable energy transition. These initiatives will greatly boost the Compressed Biogas sector’s growth, allowing us to play a pivotal role in driving India towards a more sustainable future.”
—Mahesh Girdhar, MD & CEO, EverEnviro Resource Management Pvt Ltd
Empowering MSMEs
The FY25 budget reflects a decisive commitment to sustainability and decarbonisation. Key initiatives such as energy efficiency investments in MSMEs to enhance their competitiveness will be a game-changer, empowering small and traditional industries to embrace green transitions. The strategic shift for ‘hard to abate’ industries from just energy efficiency implementation to GHG emission reduction targets is a forward-thinking move that aligns with global climate goals. We are eagerly anticipating the upcoming policy document on appropriate energy transition pathways, which promises to balance the imperatives of employment, growth, and environmental sustainability. The new centrally sponsored scheme for skilling programmes will also equip our workforce with the necessary tools to drive these initiatives forward. These measures are integral to achieving India’s climate goals, perfectly aligning with AEEE’s mission to enable equitable energy transition and achieve a climate resilient and energy secure future.”
—Dr Satish Kumar, President & Executive Director, AEEE
Prioritizing energy security
The government deserves commendation for prioritizing energy security as one of its Nine Priorities in the Union Budget 2024. By focusing on the availability, accessibility, and affordability of energy, the government is laying a strong foundation for a Viksit Bharat by 2047. The budget has further strengthened the energy transition journey by expanding the list of exempted capital goods for manufacturing domestic solar cells and panels. This will boost domestic manufacturing of solar cells and panels, further secure supply chain and help India achieve its target of 280 GW of solar power by 2030. The proposed policy framework for promoting pumped storage projects will promote hybrid renewable projects, which will be a key step towards ensuring round the clock electricity. As a global leader in renewable energy, ENGIE India is committed to supporting India’s journey in energy transition and contributing to a more sustainable and greener future.
—Amit Jain, CEO & Country Manager, ENGIE, India
Solid foundation for a resilient future
“The budget charts a strategic path for India’s growth over the next five years, with a strong emphasis on green energy and infrastructure development, supported by an allocation of Rs 19,100 crore to the Ministry of New and Renewable Energy. This approach lays a solid foundation for a resilient and sustainable energy future. We commend the government’s ongoing commitment to advancing the solar sector through support for domestic manufacturing and innovation. The focus on expanding solar capabilities highlights a clear dedication to enhancing India’s leadership in renewable energy. Furthermore, improving grid infrastructure is essential for the success of the solar industry, ensuring efficient integration and distribution of renewable energy. As India pursues its net-zero emissions target by 2070, Nextracker remains committed to contributing with our advanced solar tracking solutions. With the outlined strategic policies and investments, we are confident that India will continue to strengthen its role in the global clean energy transition.”
—Rajeev Kashyap, Senior VP and General Manager Nextracker- Middle East, Africa & India
Sustainable nation building
“The Union Budget 2024-25 underscores the government’s commitment to sustainable nation building, with a pronounced focus on energy transition and youth development. The budget’s support for research & development of newer technologies to speed-up the energy transition, announcement on developing a roadmap for updating the emissions targets of hard-to-abate industries, and overall emphasis on cross-industry energy efficiency, are commendable measures that will build a green economy. Schneider Electric is committed to supporting the government’s sustainability efforts and pave the way for a decarbonised economy. Additionally, FM Sitharaman’s announcement on offering internships to 1 crore youth over five years, with the top companies funding the training costs through their CSR contributions, strategically places the private sector at the forefront. At Schneider Electric, we welcome this strategic approach to promote holistic economic development, which will eventually drive India closer to its sustainability goals.”
—Venkat Garimella, Vice President – Strategy & Sustainability, Greater India, Schneider Electric
Supporting new energy technologies
“We are encouraged by the government’s decision to partner with private energy companies and provide substantial R&D funding for new energy technologies. This will drive innovation and support the development of critical materials essential for the sector’s growth. Overall, this budget sets a robust framework for advancing India’s clean energy transition, enhancing investor confidence, and promoting sustainable development. We remain committed to contributing to India’s vision of a Viksit Bharat, leveraging innovation and dedication to renewable energy to drive a resilient and green future.”
—Manikkan S, Executive Director & CEO, Radiance Renewables
Customs duty waiver is a welcome move
“The government’s announcement of a 25 per cent waiver on customs duty for nearly 25 critical minerals is poised to drive demand across various renewable sectors, including energy storage solutions, electric vehicles (EVs), high-tech electronics, defense, and space. This initiative will bolster the refining and processing of these minerals, strengthening a resilient supply chain ecosystem. Additionally, the establishment of a ‘Critical Mineral Mission’ aims to oversee domestic production, recycling, and international acquisition of critical mineral assets. The mission will prioritize technology development, skilled labor, and an expanded producer responsibility framework, including Extended Producer Responsibility (EPR), which will benefit the e-waste and battery recycling sectors.”
—Prassann Daphal, CEO, Recyclekaro
Towards a resilient energy system
“While the measures in Budget 2024 will advance renewable energy initiatives, achieve energy independence, mitigate environmental impacts, and create a resilient energy system for future generations, we wish more had been done to accelerate the development of Green Hydrogen. A greater emphasis on this promising technology would significantly bolster our sustainability efforts and reinforce our commitment to a greener future. This technology holds great promise, and putting more effort into developing it could really strengthen our sustainability goals and show our commitment to a greener future. Our goal is to build on the Budget 2024’s progress by advancing renewable energy and boosting Green Hydrogen development. This will help us achieve a more sustainable and greener future.
—A.K. Tyagi, Founder & CMD, Nuberg Engineering Ltd
Pathway to clean energy
“The goal to invest INR30.5 lakh crore in renewable energy by 2030 strengthens the pathway towards greener and cleaner energy. The Union Budget 2024’s focus on green energy, digital agriculture infrastructure, and rural enterprises aligns perfectly with BiofuelCircle’s mission. Our digital platform for the bioenergy supply chain uniquely connects rural and industrial economic segments. Supporting small rural enterprises, providing easy access to working capital, and offering competitive financing rates will help drive circular economic practices. Incentivizing the use and production of green fuels and biofertilizers is crucial for India’s energy security and sustainability goals.”
—Suhas Baxi, Co-founder & CEO, BioFuelCircle
Accelerating adoption of clean energy
The budget highlights the government’s commitment to bringing out a policy document on appropriate energy transition pathways. This will provide a roadmap for India’s energy transition, outlining strategies and measures to accelerate the adoption of clean energy technologies, promote energy efficiency, and reduce the country’s reliance on fossil fuels. By considering the socio-economic implications of the energy transition, the government aims to ensure a just and inclusive transition that benefits all segments of society.
I found a few missing items that were not spelled out in the budget and that included using Artificial intelligence enabled Virtual Power Plant to systematically integrate of decentralized energy resources and with the centralized grid as this is the only viable path to India’s ambition of net zero by 2070. This is the need of the hour and Power Ministry must consider allocating resources and funding to enable this mechanism.
Overall, the Union Budget’s focus on developing a taxonomy for climate finance and formulating a policy document for energy transition will contribute to India’s climate goals.
—Manoj Sinha, CEO & Co-founder, Husk Power Systems
Propelling overall economic growth
“Ramky Infrastructure Ltd commends the Government of India’s vision for propelling overall economic growth. The Viksit Bharat mission’s nine priorities unveil a wealth of opportunities for both public and private entities through enabling policies and fiscal support.
We applaud schemes like PM Awas Yojana, which addresses housing needs in both urban and rural areas. The government’s commendable allocation of Rs 2.66 lakh crore for rural development will facilitate the provision of essential infrastructure. In conclusion, Ramky Infrastructure Limited firmly believes the 2024 union budget paves the way for inclusive and sustainable growth across the nation.”
—Y. R. Nagaraja, Managing Director, Ramky Infrastructure Ltd
Sharp focus on solar energy
“The Union Budget 2024 was built on the foundation of Viksit Bharat. A strong focus was put on solar energy. The remarkable achievement of PM Surya Ghar Muft Bijli Yojana with 1.28 crore registrations and 14 lakh applications reflected the growing public awareness and alignment with the government’s vision of a solar-powered India. As a leading solar panel manufacturer, this motivates us to make solar energy more adoptable, affordable, and accessible nationwide. The exemption of customs duty on lithium, a crucial mineral used in the renewable energy sector, will reduce costs, making lithium-based technologies more affordable. The pumped storage policy which includes pumped storage projects for electricity storage will facilitate the smooth integration of the growing share of renewable energy into the overall energy mix, paving the way for a sustainable energy future. Imposing customs duty on the import of solar glass for solar cell and module production will promote domestic manufacturing and boost the economy. The increase of BCD on non-biodegradable PVC flex banners from 10% to 25% is a commendable step towards environmental conservation. Power projects including setting up of a new 2400-MW power plant at Pirpainti, Bihar will add Bihar in the category of solar powered states, overall enhance the power quotient, add to the existing power capacity and create jobs. Overall, the budget highlighted the remarkable changes that will contribute to the development of a nation we all envisioned.”
—Raman Bhatia, Founder & MD, Servotech Power Systems Ltd.
Sharp focus on e-mobility
“SuKam welcomes the Ministry of Finance’s decision to fully exempt the custom duty on critical minerals which will reduce the price of lithium-ion batteries and consequently making electric vehicles more affordable. The Finance Minister’s emphasis on expanding the electric vehicles ecosystem through increased usage in public transport network, is a forward-looking move. By championing these initiatives, the government reaffirms its commitment to climate control. EVs contribute significantly to reducing greenhouse gas emissions, and their widespread adoption aligns with global efforts to combat climate change. It’s heartening to see this focus on both affordability and environmental responsibility.”
—Sanchit Sekhwal Goyal, Director, Su-Kam Power Systems Ltd
Growth-oriented budget
“It was heartening to witness the growth-oriented budget focusing on infrastructure and urban development, presented today by the Honorable Finance Minister, Smt. Nirmala Sitharaman. The thrust on affordable housing and developing 14 cities as growth-hubs is commendable. Establishment of industrial parks near 100 cities, increasing spend to 3.4pct of the GDP towards infrastructure, boost to skilling and employment generation will help the elevator and escalator industry and provide an impetus to the overall economy.”
—Sebi Joseph, President, Otis India
Supporting MSMEs is commendable
“The government has laid its focus on energy security as one of the pillars in the Union Budget 2024. The new policy document on India’s energy future is much awaited, and I expect it to include the plans to achieve rooftop solarisation, enhancing electric vehicle infrastructure, and promoting biodegradable polymers & bioplastics – as was announced in the interim budget in February. I also look forward to the government’s focus on developing indigenous energy technologies and building local capabilities amongst micro and small industries in energy production and management. On that note, the provision of financial support to micro and small industries for shifting to cleaner forms of energy is also a commendable move by the government. Another good move is the exemption of custom duty on capital goods for manufacturing of solar cells and panels. A taxonomy for climate finance, as planned by the government, will help improve the availability of funds for adapting to climate change and reduce greenhouse gas emissions.
Under urban development, the budget also talks about promoting water supply, sewage treatment and solid waste management projects and services for 100 large cities in India. This will set a benchmark for water and waste management practices which can then expand to tier-2 and tier-3 cities eventually.”
—Dr. Miniya Chatterji, Founding Director, Anant School for Climate Action, and CEO, Sustain Labs Paris
