Budget's focus on energy sector to benefit renewable energy industry: Experts

New Delhi, Feb 4 (PTI) The energy sector-related announcements in the Budget will enhance infrastructure development in the country, benefiting the renewable energy industry in terms of investments and raw material security, experts said.

The budget has also addressed challenges related to grid storage technology and access to critical minerals, they said.

Finance Minister Nirmala Sitharaman presented her record eighth straight Union Budget in the Lok Sabha on Saturday.

In her budget speech, she made several announcements to give a push to various sectors, including renewable energy and power.

Dibyanshu, Partner, Khaitan & Co., said the government continues its commitment to power sector reforms by incentivising Discom efficiency and strengthening intra-state grid capacity.

These measures will enhance energy infrastructure development, particularly benefiting the renewable energy sector, he added.

Senior Advocate at Supreme Court GV Rao said the government has also addressed several challenges related to access to critical minerals and grid storage technologies in the Budget.

Increasing investment in intra-state grid expansion and bringing in mining reforms will help in the reduction of industrial disputes and early execution of energy projects, said Rao, who is also the Chairperson National Council for Arbitration and Mediation of industry body Assocham.

Somesh Kumar, Partner & Leader - Power & Utilities, EY India, said Power sector reforms will incentivise electricity distribution improvements and intrastate transmission capacity augmentation, improving the financial health of Discoms. States implementing these reforms will benefit from an additional 0.5 per cent of GSDP borrowing capacity, ensuring better infrastructure and efficiency.

Vikram V, Vice President and Co-Group Head, Icra Ltd, said measures such as the nuclear energy mission with a 100 GW capacity target by 2047, increased allocation to the PM Surya Ghar Muft Bijli Yojana and national manufacturing mission to promote the manufacturing of solar PV cells, wind turbines, grid-scale batteries and electrolysers.

Ashwin Jacob, Partner and Energy, Resources & Industrial Industry Leader, Deloitte India, said, "The government has rightly recognised the need for competitiveness for Indian downstream manufacturers using critical minerals, announcing the exemption of cobalt products, LED, zinc, lithium-ion battery scrap, and 12 critical minerals from basic Customs Duty (BCD)".

Sambitosh Mohapatra, Partner and Leader – Sustainability, Energy and Climate, PwC India said, "Amendments to the Atomic Energy Act will encourage private sector involvement, while a Rs 20,000 crore investment in small modular reactors (SMRs) showcases the government's commitment to innovation".

The operationalisation of five indigenous SMRs by 2033 will reinforce India's leadership in nuclear technology and its dedication to combating climate change.

Shashank Sharma, CEO and founder, Sunsure Energy termed the national manufacturing mission a strategic move taken by the government to boost domestic manufacturing of critical components like solar PV cells, EV batteries, motors and controllers, electrolysers, wind turbines, very high voltage transmission equipment, and grid-scale batteries.

On boosting battery storage, Ankit Hakhu, Director, Crisil Ratings Ltd, said the development of battery-backed renewable projects, which are expected to form over 33 per cent of renewable power capacity additions in India over the next 3-5 fiscals will benefit by having greater control over costs, quality and supply of battery systems. PTI ABI ABI BAL BAL