The solar energy sector has increased in the allowance of the union budget 2025-26 while the government plans to focus on the solar program on the roof, Prime Minister Surya Ghar Muft Bijli Yojana with an RS allocation 20,000 crores, against Rs 6,500 in FY25.
There was an increasing push for renewable energies with the country’s objective of having 500 GW of non -fossil fuel power by 2030. It is currently 209 GW.
The Minister of Finance has announced a manufacturing mission and it will also support the manufacture of own technologies.
“This will aim to improve the additional domestic value and build our ecosystem for solar PV cells, EV batteries, motors and controllers, electrolysis, wind turbines, very high voltage transmission equipment and batteries ‘Network scale, ”she said.
This occurs while the Economic Survey FY25 also underlined the dependence on China for materials for renewable manufacturing.
Varchasvi Gagal, MD and CEO of Datta Power Infra, said that this decision is a strategic step towards the creation of a robust manufacturing ecosystem in India, supported by the incentive scheme linked to production (PLI).
“First, this will improve India’s autonomy in the production of solar cells, aligning the vision of the government of Atmanirbhar Bharat. Second, it will considerably accelerate the country’s progress towards the achievement of its ambitious objective of 500 gigawatts of renewable energy by 2030. Said.
To further support local production, the basic customs of customs have been removed on cobalt powder, the lithium -ion battery, lead, zinc and 12 additional critical minerals – monitoring of the policy of July 2024 which exempted 25 key minerals from import rights. This measure should reduce entry costs, secure the supply chains in raw materials and promote job creation in renewable energies.
“The Union budget rightly focused on the doubling of the manufacturing of interior manufacturing and exports, which would create new jobs, economic growth and a stable energy transition. Currently, for many manufacturers of clean energy equipment, it becomes more and more difficult to compete with the Chinese giants on artificial sales costs and overcapacity “, Rishbah Jain, head of the senior program, advice for Energy Environment & Water.
