Union Budget 2023: Battery and energy stocks in radar as green growth remained in focus

According to the Green Hydrogen Mission, India will develop a green hydrogen production capacity of at least 5 million tonnes (MT) per year by 2030.

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In Union Budget 2023, Finance Minister Nirmala Sitharaman announced they want to reach hydrogen production of 5 MMT by 2030. For the same, Rs 35,000 crore has been allocated towards achieving the net zero goal and energy transition. Along with this, battery storage will be supported with viability gap funding.

Nirmala Sitharaman also mentioned that the recently launched national green hydrogen mission with an outlay of Rs 19,744 crore will facilitate the transition of the economy to low carbon intensity and reduce dependents on fossil fuel imports while creating green jobs. An outlay of Rs 20,700 crore has been set up for a renewable energy plan in Ladakh.

Around Rs 17,490 crore of the Rs 19,744 crore outlay announced by India on January 4 will go toward incentives for the production of green hydrogen and the manufacture of electrolysers.

According to the Green Hydrogen Mission, India will develop a green hydrogen production capacity of at least 5 million tonnes (MT) per year by 2030, with an associated renewable energy capacity addition of approximately 125 gigatonnes (GW).

This will require over Rs 8 lakh crore in total investments and is expected to result in a cumulative reduction of over Rs 1 lakh crore in fossil fuel imports and a reduction of nearly 50 MT of annual greenhouse gas emissions.