Goa: The Centre will allocate a substantial part of the budgeted capital expenditure for fiscal year 2024-25 (FY25) to the energy sector, as the country strives to meet rapidly growing demand and achieve climate goals, Prime Minister Narendra Modi said on Tuesday.
The interim budget, presented on 1 February, pegged a capex of ₹11 trillion for next year, marking an increase from FY24’s budgeted ₹10 trillion.
India’s energy demand is projected to double by 2045, placing the country at the helm of shaping global energy trends, said PM Modi in his inaugural speech at the India Energy Week 2024, being held in Goa.
He urged industry leaders to join forces in steering the nation towards a future that is both prosperous and sustainable, while highlighting the need for sharing expertise, fostering collaboration on innovative technologies, and pursuing sustainable energy solutions.
This assumes significance as the country has set an ambitious goal of 500 gigawatts (GW) renewable capacity by 2030. With a target of net-zero carbon emissions by 2070, India is positioning itself as a front-runner in fighting climate change.
PM Modi detailed his government’s plan to raise the share of gas in India’s energy mix to 15% by 2030, up from the current 6%, necessitating an investment of approximately $67 billion in the next five to six years.
He also emphasized the country’s rapid economic growth, with a GDP growth rate exceeding 7.5% in the first half of the financial year, positioning India as the world’s fastest-growing economy.
The prime minister reiterated that India was on the verge of becoming the world’s third-largest economy, thanks in part to the expanding energy sector. India is the world’s third-largest consumer of oil and LPG, fourth-largest importer of LNG, and a major petroleum refiner.
For biofuels, the prime minister highlighted the increase in the ethanol blending in petrol to 12% in 2023, which has significantly cut carbon emissions by about 42 million metric tonnes. With a target to achieve 20% blending by 2025, India is already facilitating this transition at about 9,000 retail fuel outlets, he said.
PM Modi also shed light on India’s commitment to ‘waste to wealth’ initiatives, with plans to set up 5,000 compressed biogas (CBG) plants across the country. This move is part of a broader strategy to enhance India’s energy mix through the development of environmentally sensitive energy sources.
The announcement of the Pradhan Mantri Suryoday Yojana, a rooftop solar scheme, was highlighted as a major step towards creating investment opportunities within the solar value chain, aiming to reach 10 million households.
Furthermore, with the global interest in hydrogen energy, Modi envisioned India as a future leader in hydrogen production and export, following the roll-out of the National Green Hydrogen Mission last year.
He expressed confidence that India’s green energy sector would offer lucrative opportunities for both investors and industries, reinforcing the nation’s commitment to sustainable energy development and climate action.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it’s all here, just a click away! Login Now!
Download The Mint News App to get Daily Market Updates.
More
Less
Published: 06 Feb 2024, 03:13 PM IST