A review of Union of Budget 2024 towards “Energy Sector”: Are we moving towards Green Energy?

Rs. 2,228 crores allocated towards Nuclear Power Projects in the Union Budget 2024 against its earlier budget allocation of Rs. 442 crores in 2023-24, there is another remarkable allocation towards Solar Power (Grid) a total of Rs. 10,000 crores allocated against its previous allocation of Rs. 4,970 crores in 2023-24. This is more than the double allocation amount than the previous year’s budget. However, a whooping jump of allocation is noticed towards Nuclear Power. It is indicating that all sources of energy have to be tapped to make India self-sufficient.

In a historic budget presentation, Finance Minister Ms. Nirmala Sitharaman created history by surpassing the previous record of Shri Morarji Desai, who presented for 6 times the Union Budget. The Union Budget 2024 considered as Modi 3.0 is indeed a landmark budget as the budget session happened after the General Elections in India. The BJP came into power with lot of hopes and aspirations of the public, the budget to some extent revealed its intentions in fulfilling its promises made during the general elections. There is a buzz of Viksit Bharat@2047 as the mandate of the Government; in fulfilling this mandate, the current Union Budget 2024 has given significant importance to some of the core sectors. One such sector is the “Energy Sector”.

India with both renewable and non-renewable sources of energy stood on 3rd position from production and 4th from consumption point of view as per 2022 statistics on electricity. As per the EPS (Electric Power Survey) the demand projections are 277.2GW during peak time and 1907.8 BU for the year 2026-27 to meet this requirement, a substantial amount of allocation is required to make India self-sufficient not only in electricity and but also in all forms of energy. Then only the mandate of Atmanirbhar Bharat making India energy independent by 2047 is achievable.

As per the Union Budge 2024, the expenditure break-up, Rs. 68,769 crore goes towards the “Energy Sector”, which stood 8th position in the total expenditure break-up. Now, the concern is towards allocation of budget towards this sector, Rs. 2,228 crores allocated towards Nuclear Power Projects against its earlier budget allocation of Rs. 442 crores in 2023-24, there is another remarkable allocation towards Solar Power (Grid) a total of Rs. 10,000 crores allocated against its previous allocation of Rs. 4,970 crores in 2023-24. This is more than the double allocation amount than the previous year’s budget. However, a whooping jump of allocation is noticed towards Nuclear Power. It is indicating that all sources of energy have to be tapped to make India self-sufficient, however, can this make India as self-sufficient Green Energy?

Occupying 100% Green Energy Rank is no doubt a remarkable achievement, but India to be in those rank needs not only budget allocations, but there is also a need of contributions from all sectors including the individuals. The impetus towards alternative sources of energy will make India definitely a self-sustained green energy nation even before the mandate of 2047.

The surge in Electric Vehicle market in Automobile segment, and in terms of electricity moving towards renewable sources of energy and the subsidies and the allocations towards these segments, gives the hints towards “Green Energy” and therefore, we can say that the budget of 2024 is a green economy budget and a way forward towards “Green Energy”.

Disclaimer: The views expressed in this column are purely individual and not of the institution or any association and also not intended to create any legal opinion or comment.

(The writer is Associate Professor & HoD, Dept. of Commerce, SRM University, Andhra Pradesh)