On February 1, 2023, the Finance Minister of India, Nirmala Sitharaman will present the budget for 20223– 2024. Experts believe that this year's budget will demonstrate a continuing effort by the Government of India towards a more sustainable resilient economy. The Government is expected to consider various elements addressing environmental concerns. The industry players and experts are looking at announcements encouraging electric vehicle (EV) adoption and enhancing the infrastructure development for the related ecosystem and increase in adoption of clean energy technologies. Here are some of the expectations of corporate leaders from Union Budget 2023.
“With pressure on countries for climate action and India's climate commitments of COP26 and COP27, India has been ramping up its efforts towards a greener and more sustainable economy. Industry experts are hoping to reap maximum benefits with the expectation of some tweaks in the tax implications in the upcoming budget. India has taken a Net Zero Pledge by 2070; therefore, it becomes important to have incentives to promote renewable energy, 2G ethanol, and flex-fuel hybrid vehicles and to create an Indian market for decarbonisation (Carbon credits).
The government has already approved an outlay of Rs. 19,744 Crores towards the National Green Hydrogen Mission, but to ensure access to low-cost capital for Renewable Energy, Battery Energy Storage Systems and Green Hydrogen project development, the budget 2023 should take measures in line with other RE-focused regions and economies across the globe. The Industry is further looking at the inclusion of petroleum products in GST to reduce costs and offer incentives to OEMs and tax benefits to ESG Bond issuances. Another expectation from the Union Budget 2023-24 is the inclusion of the Power sector, Railway or Airport redevelopment under Section 35AD as a specified business, wherein specific businesses can claim a tax deduction on their capital expenditure,” said Yogesh Mudras, Managing Director, Informa Markets in India.
Yogesh Mudras, Managing Director, Informa Markets in India |
Prateek Saxena, CEO, Hygge Energy said, "“The Indian government has made commendable efforts towards the proliferation of EV charging as well as rooftop solar. However, Niti Aayog reported that India needs 3.9 million EV charging stations by 2030, which is much more than what current policies plan for. Moreover, the country fell short of its 2022 rooftop solar target by 81.2%. The reason behind this is simply that EV charging in India, along with rooftop solar, is not attractive to business owners because it is not profitable. To achieve profitability, the government’s EV charging and rooftop solar efforts must be combined. Our projects confirmed rooftop solar-powered EV chargers ensure profitability while simultaneously reducing solar payback period. Furthermore, these chargers must be integrated with a carbon trading system that aggregates carbon credits for monetization; this will open up a carbon trading market of $10 billion and allow businesses to add another revenue stream. It is essential that the 2023 budget comprises policies focused on carbon credit-enabled rooftop solar-powered EV charging. Keeping in line with India’s ambitious net-zero goals, this three-pronged system will ensure a thriving EV charging industry in the country.”
Prateek Saxena, CEO, Hygge Energy |
