Union Budget 2021- Reforms and Announcements for the Energy sector
The Union Budget 2021 saw initiatives and schemes for strengthening the energy sector, with an emphasis on non-conventional and renewable energy. The Hon’ble Finance Minister stated that the government had successfully added 139 Giga Watts of installed capacity, and added 1.41 lakh circuit km of transmission lines.
Highlighting the need to promote competition among Distribution Companies, the Finance Minister announced that a new framework would be created to provide consumers the choice among more than one Distribution Company. She also announced a reforms-based result-linked power distribution sector scheme to assist DISCOMS in Infrastructure creation tied to financial improvements.
Turning her attention to non-conventional sources of energy, the Finance Minister stated that it is proposed to launch a Hydrogen Energy Mission in 2021-22 for generating hydrogen from green power sources. Additionally, in a further push to the non-conventional energy sector, capital infusion of Rs. 1,000 crores will be provided to the Solar Energy Corporation of India and 1,500 crores to the Indian Renewable Energy Development Agency.
These reforms underline India’s focus on energy transition as well as resolve to reform the traditional areas of India’s energy sector.