Union Budget 2022-23 focuses on enabling energy transition and promoting clean energy growth

In the Union Budget 2022-23, the Ministry of Power (MoP) has received a net budgetary allocation of Rs 160.74 billion and the Minis­try of New and Renewable Energy has been allocated Rs 69.01 billion. A total investment of Rs 514.7 billion for 2022-23 has been proposed by state-owned public sector utilities under the MoP. For electric vehicles (EVs), the union finance minister announced that the government will come out with a battery swapping policy and formulate interoperability standards. An additional allocation of Rs 195 billion has been announced towards the production-linked incentive scheme for the manufacture of high efficiency solar modules. The minister has also stated that 5-7 per cent biomass pellets will be co-fired in thermal po­wer plants. The budget has also announced the setting up of four pilot projects for coal gasification and conversion of coal into chemicals. It also announced the issuance of sovereign green bonds for mobilising resources for green infrastructure, with proceeds to be deployed in public sector projects that help in reducing the carbon intensity. The government has also announced enhanced financial support for setting up distributed renewable energy projects in border villages under the Vibrant Village Programme.