The Budget introduces significant measures to enhance the renewable energy sector, notably with the exemption of basic customs duty on lithium-ion battery scrap. This move is poised to accelerate recycling efforts, promoting the circular economy and reducing India's vulnerabilities in the renewable energy supply chain. However, a Production Linked Incentive (PLI) scheme targeting the domestic recycling of renewable energy products could have further strengthened this initiative, ensuring long-term sustainability and growth.
The focus on nuclear energy is also a major highlight, with the ambitious goal of developing 100 GW of nuclear energy by 2047. The government’s plans to amend the Atomic Energy Act and the Civil Liability for Nuclear Damage Act, alongside the creation of a Nuclear Energy Mission for Small Modular Reactors (SMRs) with an investment of Rs 20,000 crore, signal a significant step forward in meeting the country’s energy transition goals. This move is expected to diversify India’s energy mix and reduce dependence on conventional energy sources.
Additionally, the budget’s emphasis on critical minerals, including the exemption of basic customs duties on cobalt, lithium-ion battery waste, and other essential materials, lays the foundation for securing a robust supply chain for India’s growing renewable energy and electric vehicle sectors. This step will help foster domestic manufacturing, create more job opportunities, and solidify India’s position in the global renewable energy market.