Prime Minister Narendra Modi’s pledge to add 500 gigawatts of non-fossil fuel energy sources by 2030 is likely to face a funding hurdle as massive investments will be required to boost capacity, according to ICRA Ltd.
India will require up to Rs 45 lakh crore worth of investments by 2030 to meet that pledge, analysts Rohit Ahuja and Madhura Nejjur said in the rating agency’s first-ever climate series report. “Availability of adequate funding avenues remains critical to achieve capacity targets.”
India made ambitious commitments at the COP26 climate summit in Glasgow last year. The country announced a two-phased plan—increasing non-fossil fuel capacity by 2030 and then targeting net-zero emissions by 2070. While net zero is a distant target, the 2030 commitments will require urgent interventions on the policy and investment front.
Till FY30, ICRA said, the country will need to spend Rs 20-25 lakh crore for adding more capacity. Another Rs 10-15 lakh crore will be required for the supporting transmission infrastructure and storage capabilities.
Source : bloombergquint
