Post-Budget Quote by Mr. N Venu, MD & CEO, India & South Asia, Hitachi Energy – EQ Mag Pro

“India delivered a pro-growth budget with a significant push to capital expenditure to boost the supply side and attract private investment. The government appears to have had its ears to the ground and covered a vast gamut of sectors in its four priority areas — PM Gati Shakti, Inclusive Development, Climate Action, and Energy Transition.

Intentions have been clear – steer India toward sustainable development with a strong focus on financial support to MSMEs and expansion of emerging sectors such as solar power, EV infrastructure, railways, data centers.

Additional allocation of INR 19500cr for PLI scheme, development of new-gen trains over the next three years, INR 1400cr allocation for hydro and solar projects in FY23, rationalization of custom duties on select capital goods, wider coverage of single-window clearance for green projects will pave the way toward clean energy transition.

Clear emphasis on technology and digitalization with due consideration to upskilling the youth and R&D to build back better are a big positive. While some important elements such as a new SEZ legislation, funding schemes for new metro rail systems and cleantech, urban planning to promote sustainable living, battery swapping policy appear to work in progress. the government has laid the blueprint for growth over the coming two-three decades.

Unambiguous intent on achieving its COP26 ambitions through key proposals such as urban planning, energy efficiency, increased budget for PLI, distributed grids for remote villages, and finance to enable these through new climate finance services and categorizing grid-scale BESS as harmonized infra. Focus on standardized and efficient mass transport metro & rail will help normalize costs. The battery swapping and interoperability proposals for EVs are a way of triggering adoption, which will then create enough demand for technology evolution. MSME ratings will help calibrate the Indian supply chain to world-class.

The climate-responsive budget also keeps consumers at the center – DISCOM options, skilling & employability, focus on R&D.”