In the Budget 2023, Finance Minister Nirmala Sitharaman vowed a push in the green energy sector. India wants to promote decarbonization and the expansion of clean energy, therefore the news makes sense. FM According to Sitharaman, the nation would concentrate on green growth initiatives to lower carbon intensity and generate green jobs. Stocks of green and renewable energy firms skyrocketed as a result of this information. Inox Green Energy increased by 6.9%, and Inox Wind increased by 5.8%. Gujarat Gas, a major CNG player, increased 5.7%, and Borosil Renewables increased 8.79%.
The National Green Hydrogen Mission was established by FM Sitharaman with a budget of Rs 19,700 crore to aid in the transformation of the economy from fossil fuels to green power. Investors and businesspeople keenly observed how the government addressed the energy sector in the budget, particularly in light of the Center’s aspirations for green energy, which are expected to have a big impact on India’s economic development.
The government has pledged to reduce India’s estimated total carbon emissions by 1 billion tonnes by the end of the decade. It seeks to achieve net-zero carbon emissions by 2070 and a decrease in the nation’s economic carbon intensity of less than 45% by 2030. Experts in the clean energy sector anticipate some enlightening announcements in the upcoming budget.
According to Santosh Janakiram, partner at Cyril Amarchand Mangaldas and head of the Projects & Financial Institutions Group in India, India needs $500 billion to reach its goal of 500 gigawatts (GW) of renewable energy by 2030. Furthermore, according to Janakiram, “These funds will be used to support the development, transmission, and storage of renewable energy.” Adani Green, which obtained $1 billion exclusively through international debt financing, is a successful illustration of how domestic and international debt finance may be a significant source of this cash. Similar tactics could be used in the Budget 2023.