Creating jobs even while giving a fillip to the green energy sector. That is the ‘two birds with one stone’ strategy the renewables sector is proposing for a ‘green’ budget this time around.
Sector specialists feel a budgetary focus on the green energy sector even beyond the missives from last year as well as the PM launching a Green Hydrogen Mission apart (even if many players in the EV sector felt shortchanged with the PM E-DRIVE scheme that was launched in September to replace the erstwhile FAME subsidies) would augur well for the clean energy aims of the country – and what could be better if it could also spawn desperately needed jobs along the way?
“New areas of employment generation such as the maintenance of electric vehicles and support for burgeoning rooftop solar ecosystems need budgets for vocational training of the youth,” said Govind Sankaranarayanan, co-founder and COO of Ecofy, a green-only NBFC, adding, “As a green lender, we think that the larger banking system needs to be encouraged to channelise funds to SMEs looking to become resource efficient. The largest chunk of jobs gets created within the SME space, and therefore, the continuation of incentives to SMEs would be desirable through this year’s budget incentives.”
While a lot of focus is being given to the green sector, keeping in mind India’s objective of going net carbon neutral by 2070, those in the sector feel a lot more needs to be done. Despite the Green Hydrogen Mission and its lofty push, government intervention in pricing and policy is needed to make it competitive, argues Sandeep Agarwal, founder of Greenzo Energy, an electrolyser manufacturer.
“Government intervention (is needed) to make the cost of green hydrogen comparable to fossil fuels, including subsidies, tax incentives and other financial support to reduce the production cost of green hydrogen,” he said.
His other demands? Reworking the PLI scheme for the sector based on production instead of sales and easy government and private funding to support the development and production of electrolysers. “The government should (also) provide early notification of green hydrogen transportation and storage standards,” he added, besides calling for subsidy on tariffs for electricity generated in solar parks, and a removal of import duty on import of devices and equipment that consume green hydrogen.
A lot will depend on the government’s intent with regard to the Net Zero emissions target and the roadmap to get there, and many feel budget 2025 could be the catalyst the transition requires. “Government must clarify its energy transition policy,” said Shailendra Singh Rao, founder and MD of Creduce, a Gujarat-based carbon credits supplier, “It is anticipated that tax incentives and simplified rules would be introduced to encourage investment environmentally friendly initiatives.”
