Budget 2023: India Takes Major Steps Towards Green Growth With New Policies & Investments in Clean Energy, Farming, and Transportation

Budget 2023: India Takes Major Steps Towards Green Growth With New Policies & Investments in Clean Energy, Farming, and Transportation
Budget 2023: India Takes Major Steps Towards Green Growth With New Policies & Investments in Clean Energy, Farming, and Transportation

NEW DELHI: Finance Minister Nirmala Sitharaman, during her budget speech on Wednesday, said we are implementing numerous programmes for green fuel, green energy, farming, mobility, buildings, and equipment, as well as regulations for energy efficiency across a wide range of economic sectors.

These green growth initiatives help reduce the economy’s carbon intensity while also creating large-scale green job possibilities.

Green Development

She said Prime Minister Narendra Modi has outlined a vision for “LiFE,” or Lifestyle for Environment, to spark a movement of ecologically responsible living. India is strongly committed to achieving ‘panchamrit’ and net-zero carbon emissions by 2070 in order to usher in a green industrial and economic transition. This Budget expands on our commitment to green growth.

Mission Green Hydrogen

The recently formed National Green Hydrogen Mission, with a budget of Rs 19,700 crores, will help the economy transition to a low-carbon economy, reduce reliance on fossil fuel imports, and position the country as a technical and market leader in this emerging industry. “Our goal is to reach 5 MMT of yearly production by 2030,” Sitharaman said.

Transition to a Low-Cost Energy Source

The Ministry of Petroleum and Natural Gas has allocated Rs 35,000 crore for priority capital investments toward energy transition, net zero goals, and energy security.

Projects for Energy Storage

Battery Energy Storage Systems with a capacity of 4,000 MWH will be supported with Viability Gap Funding to help steer the economy toward sustainable development. A thorough framework for Pumped Storage Projects will be developed as well.

Evacuation of Renewable Energy

The inter-state transmission line for the evacuation and grid integration of 13 GW of renewable energy from Ladakh will cost Rs 20,700 crore, including Rs 8,300 crore in national funding.

Green Credit Scheme

A Green Credit Programme will be notified under the Environment (Protection) Act to encourage behavioural change. This will encourage enterprises, individuals, and local governments to take ecologically sustainable and responsive actions and help mobilise more resources for such initiatives.

PM-PRANAM will be launched to encourage states and union territories to promote alternative fertilisers and the balanced use of chemical fertilisers.

GOBARdhan Plan

GOBARdhan (Galvanizing Organic Bio-Agro Resources Dhan) would develop 500 new ‘waste to wealth’ plants to promote the circular economy. At a total investment of ‘10,000 crore, these will include 200 compressed biogas (CBG) facilities, 75 of which will be in metropolitan areas, and 300 community or cluster-based plants. This will be addressed in Part B. A 5% CBG rule will be implemented in due course for all entities marketing natural and biogas. Appropriate budgetary support will be provided for the collection of bio-mass and distribution of bio-manure.

Prakritik Kheti Bhartiya Bio-Input Resource Hubs

Over the next three years, we will assist one crore farmers in adopting ecological farming. 10,000 Bio-Input Resource Centres will be established for this purpose, resulting in a national-level distributed micro-fertilizer and pesticide manufacturing network.


Building on India’s success in afforestation, the ‘Mangrove Initiative for Shoreline Habitats and Tangible Incomes,’ or MISHTI, will be implemented for mangrove plantation along the coastline and on salt pan lands wherever possible, through collaboration between MGNREGS, CAMPA Fund, and other sources.

Wetlands like Amrit Dharohar are critical ecosystems that support biological variety. “Now the total number of Ramsar sites in our country has climbed to 75,” the Prime Minister remarked in his most recent Mann Ki Baat. Prior to 2014, there were just 26…” Conservation activities have always been led by local communities. Amrit Dharohar, a project that will be implemented over the next three years to encourage optimal use of wetlands and improve bio-diversity, carbon stock, eco-tourism prospects, and income production for local populations, will be promoted by the government.

Coastal Transportation

Through the PPP mode with viability gap finance, coastal shipping will be promoted as an energy efficient and low-cost mode of transport for both passengers and freight.

Replacement of a vehicle

Replacing obsolete, polluting automobiles is a critical component of greening our economy. In accordance with the car scrapping programme outlined in Budget 2021-22, I have allocated appropriate funding to scrap outdated Central Government vehicles. States will also be assisted in the replacement of obsolete cars and ambulances.

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