He opined that India has huge potential to lead the world in green energy and the country will forward the cause of global good apart from generating green jobs
Prime Minister Narendra Modi on Thursday invited global investments in the green energy sector stressing India's potential in renewable energy like wind, solar and biogas is no less than a "goldmine or oil field". Addressing a webinar on various announcements made in the Union Budget 2023-24 on green growth, Modi said, "This budget is not only an opportunity, but it also contains the guarantee of our future security."
He said India has been the fastest in renewable energy capacity addition among major economies since 2014. "India will play an important role in green energy, I invite all stakeholders to invest in India," he said. On the great opportunities for investors in India, he stated that "the potential of solar, wind and biogas in India is no less than any gold mine or oil field for our private sector".
He opined that India has huge potential to lead the world in green energy and the country will forward the cause of global good apart from generating green jobs. Modi addressed the post-budget webinar on ‘Green Growth’ on Thursday, which is the first of a series of 12 post-budget webinars, organized by the government to seek ideas and suggestions for the effective implementation of the initiatives announced in the Union Budget 2023.
He stated that all the budgets tabled in the country after 2014, have been forwarding new-age reforms apart from finding solutions to the challenges faced in the present day. The Prime Minister outlined three pillars for green growth and energy transmission. First, increasing the production of renewable energy; second, reducing the use of fossil fuel in the economy; and finally, rapidly moving towards a gas-based economy in the country.
He highlighted measures like ethanol blending, PM KUSUM Yojana, incentives for solar manufacturing, rooftop solar scheme, coal gasification, and battery storage in the Budgets of the past few years. Underlining the significant announcements in previous years' budgets, Modi highlighted schemes such as green credit for industries, PM Pranam Yojna for farmers, Gobardhan Yojna for villages, vehicle scrapping policy for cities, Green Hydrogen and wetland conservation in this year's budget.
Referring to the global efforts for diversification of the energy supply chain, the Prime Minister said that this Budget has given a great opportunity to every green energy investor to invest in India. This will also be very useful for the startups in the sector, he added. He also stated that India's track record shows its capability to achieve the objectives before time when it comes to renewable energy resources.
He that India achieved the target of 40 per cent contributions from non-fossil fuels in the installed electricity capacity nine years before the target date. He also mentioned that India achieved the target of 10 per cent ethanol blending in petrol five months before time and emphasised that the nation strives to achieve 20 per cent ethanol blending in petrol by 2025-26 instead of 2030.
He also mentioned that the total renewable energy capacity of 500 GW will be achieved by 2030. Recalling the launch of E20 fuel, the Prime Minister noted the government's emphasis on biofuels and said that it has brought new opportunities for investors. He observed the abundance of agri-waste in the country and urged the investors to not miss the opportunity of setting up ethanol plants in every corner of the country.
About National Green Hydrogen Mission, he stated that India is moving with a target of production of 5 MMT green hydrogen. An allocation of Rs 19,000 crore has been made to incentivize the private sector in this field (green hydrogen). He also touched upon other opportunities such as electrolyzer manufacturing, green steel manufacturing and long-haul fuel cells.
The Prime Minister also informed that India has the potential of producing 10 thousand million cubic metres of biogas from Gobar (cow dung) and 1.5 lakh cubic meter gas from agri residue, which can contribute up to 8 per cent to the city gas distribution in the country. "Because of these possibilities, today the Gobardhan Yojana is an important component of India's biofuel strategy. "In this budget, the government has announced plans to set up 500 new plants under the Gobardhan Yojana. These are not like old-fashioned plants. The government will spend Rs 10,000 crore on these modern plants", he added.
The private sector is getting attractive incentives for producing CBG from agri-waste and municipal solid waste, the Prime Minister informed. Throwing light on India's vehicle scrapping policy the Prime Minister stressed that it is a crucial part of the green growth strategy. He informed that the government has made provisions of Rs 3,000 crore in this year's budget to scrap around 3 lakh vehicles owned by Central and State governments that are older than 15 years including police vehicles, ambulances and buses.
"Vehicle scrapping is going to become a huge market", said the Prime Minister, following the principle of Reuse, Recycle and Recovery. He also emphasised that it gives new strength to our circular economy and urged the youth of India to join various means of the circular economy. He said that India has to increase its battery storage capacity to 125-gigawatt hours in the next 6-7 years.
He also informed that government has come out with a viability gap funding scheme in this budget to support the battery developers to achieve big goals in this capital-intensive sector. The Prime Minister also touched upon water-based transport becoming a huge sector in India saying that India transports only five per cent of its cargo through its coastal route today, whereas only two per cent of cargo through inland waterways.
He underlined that the development of waterways in India will give rise to many opportunities for all stakeholders in this field. He urged all stakeholders to act quickly to implement every provision of the budget. "The government stands with you and your suggestions," he concluded.