Union Budget 2022-23: Funding for solar cells enhanced

New Delhi, February 1

Underlining India’s commitment to reduce its carbon footprint, Finance Minister Nirmala Sitharaman today proposed several near-term and long-term actions, including an additional allocation of Rs 19,500 crore for Production Linked Incentive (PLI) for manufacturing high-efficiency modules for achieving the goal of 280 GW of installed solar capacity by 2030.

The risks of climate change are the strongest negative externalities that affect India and other countries, she said, stressing that low carbon development strategy was an important reflection of the government’s strong commitment towards sustainable development. “To facilitate domestic manufacturing for the ambitious goal of 280GW of installed solar capacity by 2030, an additional allocation of Rs 19,500 crore for Production Linked Incentive for manufacturing high-efficiency modules, with priority to fully integrated manufacturing units from polysilicon to solar PV modules, will be made,” she said

Besides, co-firing of five to seven per cent biomass pellets in thermal power plants will result in CO2 savings of 38 MMT annually. This will also provide extra income to farmers and job opportunities to locals and help avoid stubble burning in agriculture fields, she said. “Moving towards zero carbon emissions is the central government’s vision. This will move the country on a sustainable development path,” Sitharaman said, adding power saving measures would be promoted among businesses.

“We will promote a shift to use of public transport in urban areas. This will be complemented by clean tech and governance solutions, special mobility zones with zero fossil-fuel policy, and EV vehicles,” she said.

Thumbs up from experts

• Experts at The Energy and Resource Institute lauded the Budget for its commitments to energy transition, energy efficiency, sustainable development and climate action
• They also lauded the Budget as a “significant milestone in the transition to a green economy”
• Measures such as the use of biomass pellets for co-firing in thermal plants would improve air quality by reducing crop burning, they said, commending the support for solar manufacturing capacity.