Budget 2025 Expectations| Tackling infrastructure and policy challenges is key to meeting govt's ambitious clean energy goals, says Sunsure Energy founder Shashank Sharma

Finance Minister Nirmala Sitharaman will present the 8th consecutive Union Budget on February 1, 2025. Reports suggest that the government is mulling over cutting income tax for those who are earning up to Rs 15 lakh a year in February's budget, in turn providing relief to the middle class.

The renewable energy sector has pinned high hopes on the Union Budget FY 2025-26 documents and is keeping its fingers crossed regarding their expectations from the government's most important financial document of the year.

Here's what Shashank Sharma, founder, Chairman & CEO of Sunsure Energy has to say--

"India's renewable energy sector stands at the cusp of a transformative decade, with ambitious goals driving growth and sustainability. However, to truly unlock the sector's potential, the upcoming Union Budget must address key bottlenecks:

1) Strengthening Transmission Infrastructure: Investing in inter-state transmission systems focused on renewable energy is critical to ensure efficient evacuation and integration of power from renewable-rich regions to demand centers across the country.

2) Reforming Land Acquisition: Simplifying and expediting land acquisition processes can significantly accelerate the implementation of renewable energy projects.

3) Exempting Lease Agreements from Taxes: To support renewable energy projects, lease agreements for these projects should be tax-exempt, reducing the financial burden on developers and enabling faster execution.

4) Balanced Anti-Dumping Duty Implementation: The budget must establish a fair and non-restrictive anti-dumping duty policy for materials like glass and aluminum to safeguard domestic manufacturing without hindering the growth of upcoming renewable projects.

As India accelerates towards its ambitious renewable energy targets, addressing critical infrastructure and policy challenges is paramount.

Creating dedicated transmission corridors for renewable energy will ensure efficient power evacuation and integration, enabling clean energy to seamlessly reach demand centers.

Tax exemptions on lease agreements for renewable energy projects will significantly reduce financial strain on developers, encouraging faster execution and scaling of projects.

Developing a robust carbon market and enforcing RPO compliance will drive greater accountability and enhance India's transition to a greener future.

Additionally, incentivising the deployment of Round-The-Clock Renewable Energy solutions, such as Battery Energy Storage Systems, will ensure that a greater share of RE is sustainably brought online to the Indian Grid.

The future of India's energy security lies in fostering bold, actionable reforms that drive innovation, resilience and growth across the sector."

Union Budget 2025 | Nirmala Sitharaman, who continues to be Finance Minister, will present her record 8th Union Budget this time. While inflation has burnt a hole in the pockets of 'aam janata', reports suggest there might be a tax relief for those making up to Rs 15 lakh per year. Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.