To further support the growth of the renewable energy sector, the government has allocated a substantial Rs 19,100 crore to the Ministry of New and Renewable Energy in the Union Budget 2024. This allocation represents a significant increase from the revised estimate of Rs 7,848 crore in the Budget for 2023-2024.
A notable portion of this budget, Rs 8,500.35 crore, is specifically earmarked for solar power (grid), marking a nearly 79% increase over the revised estimates from the previous budget. Overall, the Solar Energy segment has been allocated Rs 16,394.75 crore in the Union Budget 2024-2025, compared to Rs 6,041.56 crore in the revised estimates for the 2023-2024 budget.
In her budget presentation, Finance Minister Nirmala Sitharaman emphasized the critical role of energy transition in combating climate change. To support this transition, she proposed expanding the list of capital goods exempt from duties for use in manufacturing solar cells and panels within the country.
However, she also noted that, due to the sufficient domestic production capacity for solar glass and tinned copper interconnect, the exemption of customs duties for these items would not be extended. This approach aims to encourage local manufacturing and reduce reliance on imports.
