The Union Budget 2023-24 focuses on green and infrastructure development which would be of great help to the Indian Chemical sector in FY 2023-24 and forward. 

 

"The capital investment outlay is being increased steeply for the third year in a row by 33 per cent to Rs. 10 lakh crore, which would be 3.3 per cent of GDP. This will be almost three times the outlay in FY 2019-20. This substantial increase in recent years is central to the government’s efforts to enhance growth potential and job creation, crowd- in private investments, and provide a cushion against global headwinds," says Union Finance Minister Nirmala Sitharaman while presenting Union Budget 2023-24 in the Parliament. 

 

"A capital outlay of Rs. 2.40 lakh crore has been provided for the Railways. This highest ever outlay is about 9 times the outlay made in FY 2013-14. One hundred critical transport infrastructure projects, for last and first mile connectivity for ports, coal, steel, fertilizer, and food grains sectors have been identified. They will be taken up on priority with investment of Rs. 75,000 crore, including Rs. 15,000 crore from private sources," commented Sitharaman. 

 

Fifty additional airports, heliports, water aerodromes and advanced landing grounds will be revived for improving regional air connectivity.

 

"India is moving forward firmly for the ‘panchamrit’ and net-zero carbon emission by 2070 to usher in a green industrial and economic transition. This Budget builds on our focus on green growth," added Sitharaman. 

 

Green Hydrogen Mission - The recently launched National Green Hydrogen Mission, with an outlay of Rs. 19,700 crore, will facilitate transition of the economy to low carbon intensity, reduce dependence on fossil fuel imports, and make the country assume technology and market leadership in this sunrise sector. Our target is to reach an annual production of 5 MMT by 2030.

 

Energy Transition - The Budget provides Rs. 35,000 crore for priority capital investments towards energy transition and net zero objectives, and energy security by the Ministry of Petroleum & Natural Gas.

 

Energy Storage Projects - To steer the economy on the sustainable development path, Battery Energy Storage Systems with capacity of 4,000 MWH will be supported with Viability Gap Funding. A detailed framework for Pumped Storage Projects will also be formulated.

 

Renewable Energy Evacuation - The Inter-state transmission system for evacuation and grid integration of 13 GW renewable energy from Ladakh will be constructed with an investment of Rs. 20,700 crore including central support of Rs. 8,300 crore.

 

Green Credit Programme - For encouraging behavioural change, a Green Credit Programme will be notified under the Environment (Protection) Act. This will incentivize environmentally sustainable and responsive actions by companies, individuals and local bodies, and help mobilize additional resources for such activities.

 

PM-PRANAM - PM Programme for Restoration, Awareness, Nourishment and Amelioration of Mother Earth (PM-PRANAM) will be launched to incentivize states and union territories to promote alternative fertilizers and balanced use of chemical fertilizers.

 

GOBARdhan Scheme - 500 new ‘waste to wealth’ plants under GOBARdhan (Galvanizing Organic Bio-Agro Resources Dhan) scheme will be established for promoting a circular economy. These will include 200 compressed biogas (CBG) plants, including 75 plants in urban areas, and 300 community or cluster-based plants at a total investment of Rs. 10,000 crore. 

 

In due course, a 5 per cent CBG mandate will be introduced for all organizations marketing natural and biogas. For collection of biomass and distribution of bio-manure, appropriate fiscal support will be provided.

 

Bhartiya Prakritik Kheti Bio-Input Resource Centres - Over the next 3 years, the government will facilitate one crore farmers to adopt natural farming. For this, 10,000 Bio-Input Resource Centres will be set-up, creating a national-level distributed micro-fertilizer and pesticide manufacturing network.

 

Vehicle Replacement - Replacing old polluting vehicles is an important part of greening our economy. In furtherance of the vehicle scrapping policy mentioned in Budget 2021-22, the Union Finance Minister has allocated adequate funds to scrap old vehicles of the central government. States will also be supported in replacing old vehicles and ambulances.