Budget 2023: Sitharaman announces Rs 35,000 crore towards energy transition; Rs 19,700 crore for green hydrogen

Finance Minister Nirmala Sitharaman on Wednesday announced a Rs 35,000 crore outlay towards the country's transition to cleaner energy.

"Rs 35,000 core in priority capital investment towards energy transition and achieving India's goal of net zero carbon emission by 2070," Sitharaman said.

Sitharaman also announced an additional Rs 19,700 crore towards the government's Green Hydrogen Mission to lower carbon intensity and reduce fossil fuel use. She also announced a five million tonne target for green hydrogen production by 2030.


"India is moving forward to net-zero carbon emissions by 2070. An outlay of Rs 19,700 crore for the Green Hydrogen Mission will facilitate transmission to low carbon intensity and also reduce dependence on fossil fuels," she said in her Budget speech.

With a vision to make India an energy-independent nation and to de-carbonise critical sectors, the government approved the National Green Hydrogen Mission on January 4, 2023, with an initial outlay of Rs 19,744 crore.

The Centre is also supporting the setting up of battery energy storage of 4,000 MwH, she said, adding that a green credit programme will be also notified under the Environment Protection Act.

According to a Reuters report, the Indian government is aiming to cut green hydrogen prices by a fifth in the next five years.

"The budget prioritizes the adoption of green fuel, energy, and building practices to reduce carbon intensity and create new green job opportunities. The government's commitment to this "green growth" approach is a step towards building a cleaner and more prosperous future for all Indians. This is in the direction of India seeking a leadership role in mitigating the global climate crisis," says Gaurav Kedia, Chairman of the Indian Biogas Association.

Reliance Industries, Indian Oil, NTPC, Adani Enterprises, JSW Energy and Acme Solar are all in the green hydrogen game, with the Adani Group having a tie-up with France’s TotalEnergies.