Budget 2024: Nuclear energy to drive India’s Viksit Bharat's new power mix

The Indian government announced a significant push for nuclear energy, partnering with private firms to develop small and modular nuclear reactors. Finance Minister Nirmala Sitharaman emphasized the role of nuclear energy in the nation's future energy mix during her Union Budget 2024-25 speech. She stated, "Nuclear energy is expected to form a very significant part of the energy mix of Viksit Bharat. Our government will partner with private firms for setting up Bharat Small Reactors, conduct research and development on Bharat Small Modular Reactors, and explore newer technologies for nuclear energy."

Renewable Energy Initiatives
Central to the budget’s energy strategy is the PM Surya Ghar Muft Bijli Yojana. This scheme aims to provide free electricity up to 300 units per month to 1 crore households through rooftop solar installations. With over 1.28 crore registrations and 14 lakh applications already submitted, Sitharaman noted, "The PM Surya Ghar Muft Bijli Yojana has generated remarkable responses, and we will further encourage it."


Pumped Storage Policy
To enhance renewable energy storage and integration, the government will introduce a robust Pumped Storage Policy (PSP). This initiative aims to store excess electricity, facilitating smoother integration of renewable sources into India’s energy mix. Jignesh Ghelani, Partner at Economic Laws Practice, commented, "This step will encourage electricity generation and distribution companies to opt for PSP, ensuring continuous power supplies and helping moderate prices."

Public Sector Collaborations
Public sector giants NTPC Ltd and BHEL will launch a joint venture to establish an 800 MW commercial power plant based on Advanced Ultra Super Critical (AUSC) technology. The government will provide necessary financial support for this venture, highlighting its commitment to cutting-edge energy technologies.

Critical Mineral Mission
Sitharaman also announced the establishment of a Critical Mineral Mission to boost domestic production, recycling of critical minerals, and overseas acquisition of critical mineral assets. "The government will launch the auction of the first tranche of offshore mineral blocks for mining, building on the exploration already carried out," she said. This initiative aims to develop technology, skilled workforce, and a suitable financing mechanism.

Sustainable Agricultural Practices
The budget underscores a commitment to sustainable agricultural practices, with initiatives to bring one crore farmers under natural farming and establish 10,000 bio-input resource centers. Gaurav Kedia, Chairman of the Indian Biogas Association, praised these measures, stating, "The Union Budget 2024 has unveiled a roadmap towards a sustainable and resilient India."

India’s Union Budget 2024-25 lays out a comprehensive framework for a sustainable energy future, integrating advanced nuclear and renewable energy technologies. The government's initiatives aim to balance growth, employment, and environmental sustainability, ensuring a resilient and energy-secure future for Viksit Bharat.