Nirmala Sitharaman, the finance minister, announced steps to assist power transmission infrastructure, which is essential to India's green energy objectives, and increase the production of components in the green energy sector.
In keeping with the government's focus on energy transition, the union budget for FY26 announced a Nuclear Energy Mission with a ₹20,000 crore investment for small modular reactor (SMR) research and development.During the budget presentation, Finance Minister Nirmala Sitharaman also announced steps to assist power transmission infrastructure, which is essential to India's green energy objectives, and increase the production of components in the green energy sector.
By 2047, she set a goal to create at least 100 GW of nuclear energy. India now has 8.18 GW of nuclear power capacity, while the country's goal of 500 GW of non-fossil capacity by 2030 includes 22.48 GW of nuclear capacity.
For our energy transition initiatives, at least 100 GW of nuclear energy must be developed by 2047. Amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act will be pursued in order to actively collaborate with the private sector in pursuit of this objective," she stated.
The last two budgets also placed more emphasis on small modular reactors, which are in high demand worldwide right now due to their smaller size and lower land requirements. While the interim budget in February committed ₹1 trillion for research and development in this area, the full budget for FY25 in July suggested the government's collaboration with the private sector to create SMR.
"A Nuclear Energy Mission for research & development of Small Modular Reactors with an outlay of ₹20,000 crore will be set up," Sitharaman stated on Friday. By 2033, at least five SMRs that were developed domestically will be operationalized.
This budget also made indigenization of the green energy supply chain a priority. The Center will assist manufacturing as part of the National Manufacturing Mission, which the finance minister announced on Saturday.
"We will encourage clean tech production as part of our objective to promote climate-friendly development. According to Sitharaman, this will enhance domestic value addition and develop our ecosystem for grid-scale batteries, solar PV cells, EV batteries, motors and controllers, electrolyzers, wind turbines, and extremely high voltage transmission equipment.
A greater emphasis on domestic supply chains, vital minerals, and clean tech manufacturing—solar PV, EV batteries, and electrolysers—underlines a clear intent to be Atmanirbhar (self-reliant) amid growing geopolitical uncertainties while leveraging comparative advantages, according to Naveen Khandelwal, CEO of BrightNight India.
In keeping with the transition plan, the minister said that 35 capital products used in the production of EV batteries would be free from basic customs duties. This would speed up domestic battery production and reduce reliance on foreign suppliers. The company's aspirations to reach net zero carbon emissions by 2070 also place a lot of emphasis on the transition in mobility.
A policy for the recovery of key minerals from tailings was also outlined by her. The residue left over after minerals are extracted from ore is referred to as mineral tailings. Lithium and other critical minerals are essential raw materials used in the production of batteries and other energy transition components, such as solar modules.
"The government’s commitment to strengthening the financial and operational stability of electricity distribution companies, coupled with incentives for enhancing intra-state transmission capacity, will greatly boost the efficiency of the power sector," Union Minister for Power Manohar Lal said in response to the budget.
Additionally, he stated that the exemption of lead, zinc, lithium-ion battery waste, and twelve other essential minerals from basic custom duty will assist ensure their availability for battery manufacture in India and create more jobs for young people.
The budget also included reform measures for the power sector, which are necessary for a smoother and faster transition. Sitharaman declared that he will encourage reforms in the electricity distribution sector and support the state government's efforts to increase intra-state transmission capacity.
"We will encourage governments to increase their intra-state transmission capacity and implement changes in the distribution of electricity. Electricity firms' capability and financial health will both benefit from this. States will be permitted to borrow an additional 0.5% of GSDP, subject to certain reforms," she stated.
"A major highlight is the emphasis on strengthening electricity distribution, with plans to incentivize states to implement critical distribution reforms," stated Anil Rawal, MD & CEO of IntelliSmart Infrastructure. This is a positive step since it will incentivize governments to implement smart metering, which is urgently needed to improve the overall systemic efficiency of power utilities and optimize the distribution of electricity.
A greater emphasis on domestic supply chains, vital minerals, and clean tech manufacturing—solar PV, EV batteries, and electrolysers—underlines a clear intent to be Atmanirbhar (self-reliant) amid growing geopolitical uncertainties while leveraging comparative advantages, according to Naveen Khandelwal, CEO of BrightNight India.
In keeping with the transition plan, the minister said that 35 capital products used in the production of EV batteries would be free from basic customs duties. This would speed up domestic battery production and reduce reliance on foreign suppliers. The company's aspirations to reach net zero carbon emissions by 2070 also place a lot of emphasis on the transition in mobility.
A policy for the recovery of key minerals from tailings was also outlined by her. The residue left over after minerals are extracted from ore is referred to as mineral tailings. Lithium and other critical minerals are essential raw materials used in the production of batteries and other energy transition components, such as solar modules.
"The government’s commitment to strengthening the financial and operational stability of electricity distribution companies, coupled with incentives for enhancing intra-state transmission capacity, will greatly boost the efficiency of the power sector," Union Minister for Power Manohar Lal said in response to the budget.
Additionally, he stated that the exemption of lead, zinc, lithium-ion battery waste, and twelve other essential minerals from basic custom duty will assist ensure their availability for battery manufacture in India and create more jobs for young people.
The budget also included reform measures for the power sector, which are necessary for a smoother and faster transition. Sitharaman declared that he will encourage reforms in the electricity distribution sector and support the state government's efforts to increase intra-state transmission capacity.
"We will encourage governments to increase their intra-state transmission capacity and implement changes in the distribution of electricity. Electricity firms' capability and financial health will both benefit from this. States will be permitted to borrow an additional 0.5% of GSDP, subject to certain reforms," she stated.
"A major highlight is the emphasis on strengthening electricity distribution, with plans to incentivize states to implement critical distribution reforms," stated Anil Rawal, MD & CEO of IntelliSmart Infrastructure. This is a positive step since it will incentivize governments to implement smart metering, which is urgently needed to improve the overall systemic efficiency of power utilities and optimize the distribution of electricity.
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