Finance Minister’s Green Initiatives in Interim Budget

Finance Minister Nirmala Sitharaman presented the interim budget for 2024 in the Parliament on February 1, 2024. The budget highlighted the government’s commitment to clean energy and sustainability, as well as its efforts to create a blue economy. Here are some of the key green initiatives announced by Sitharaman in her budget speech.

Rooftop Solar Systems for One Crore Houses

Sitharaman announced that the government will provide aid for installing rooftop solar systems for one crore houses, which will enable them to obtain up to 300 units of free electricity per month. She said that this will help households save Rs 15,000-Rs 18,000 annually, and also allow them to sell the surplus power to distribution companies. This initiative is expected to boost the renewable energy sector and reduce the dependence on fossil fuels.

Offshore Wind Energy Potential

The budget also reiterated the government’s commitment to achieve net-zero emissions by 2070, as announced by Prime Minister Narendra Modi at the COP26 summit in Glasgow. To attain this goal, Sitharaman said that the government will provide viability gap funding for harnessing offshore wind energy potential for an initial capacity of one gigawatt. She said that this will be a new source of green energy for India, which has a long coastline of over 7,500 km.

Bio-Manufacturing and Bio-Foundry Scheme

Another green measure announced by Sitharaman was the establishment of a bio-manufacturing and bio-foundry scheme, which will promote the development of bio-based products and processes using synthetic biology and biotechnology. She said that this scheme will support innovation and entrepreneurship in the bio-economy sector, which has immense potential for generating employment and wealth.

Electric Vehicles and Scrappage Policy

The budget also focused on promoting electric vehicles (EVs) and reducing vehicular pollution. Sitharaman said that the government will extend the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme till March 31, 2025, with an outlay of Rs 10,000 crore. She also announced that the government will launch a voluntary vehicle scrappage policy, which will incentivize owners of old and unfit vehicles to scrap them and purchase new and environment-friendly vehicles.

Blue Economy Development

Sitharaman also announced some measures to boost the blue economy, which refers to the sustainable use of ocean resources for economic growth and social development. She said that the government will launch a deep ocean mission, which will explore the marine biodiversity and mineral resources in the Indian Ocean. She also said that the government will develop six major fishing harbours and 29 fish landing centres along the coast, which will enhance the livelihoods of fishermen and coastal communities.