FM moots ₹19,500-cr. push for solar manufacturing

What is the News?

In Union Budget 2022, the Finance Minister has announced an “additional allocation” of ₹19,500 crore as a Production-linked incentive for manufacturing solar modules.

Note: The Budget 2022 has referred to climate action as a sunrise sector and employment generator. This has sent an important signal to markets, financial institutions and the workforce.

State of Solar Energy Sector in India

According to the Central Electricity Authority: a) Solar accounted for 11.8% of the installed capacity and b) By 2030, India’s power requirement will touch 817 GW, more than half of which would be clean energy and 280GW would be from solar energy alone.

Steps taken by India to promote Renewable Energy

India has committed to “facilitate” domestic manufacturing for the solar energy sector by looking to add 2,80,000 MW of installed capacity by 2030. 

At COP 26, India has announced its aims to reach net-zero emissions by 2070. As part of this, India would increase its non-fossil energy capacity to 5,00,000 MW by 2030 and meet 50% of its energy requirements from renewable energy by 2030.

Further, in the run-up to COP-26, the U.S. and India have agreed to collaborate towards installing 4,50,000 MW of renewable energy by 2030.

Source: This post is based on the article “FM moots ₹19,500-cr. push for solar manufacturing” published in The Hindu on 2nd Feb 2022.