Measures for solar mfg, CCUS to play critical role in strengthening grid stability, say RE players

The Budget proposals for solar manufacturing and carbon capture, utilisation and storage CCUS will play a critical role in strengthening grid stability and advancing Indias decarbonisation pathway, while maintaining industrial competitiveness and energy security, industry players said.

The Budget proposals for solar manufacturing and carbon capture, utilisation and storage (CCUS) will play a critical role in strengthening grid stability and advancing India's decarbonisation pathway, while maintaining industrial competitiveness and energy security, industry players said. Presenting the Union Budget for FY27 on Sunday, Finance Minister Nirmala Sitharaman announced several measures for the solar manufacturing and nuclear projects, and proposed an allocation of Rs 20,000 crore for CCUS. Industry leaders said these steps signal a clear intent to balance climate action with economic growth. Atanu Mukherjee, CEO, Dastur Energy, said CCUS is an essential enabler of emissions reduction for sectors such as steel, cement, refining and chemicals, while safeguarding competitiveness, investment and jobs. He noted that Dastur Energy had collaborated with NITI Aayog in 2021 to develop India's first CCUS Policy Framework. Devansh Jain, Executive Director, INOXGFL Group, said the CCUS allocation complements India's energy transition by offering a pragmatic decarbonisation pathway for energy-intensive industries, while maintaining industrial competitiveness and energy security. Manish Dabkara, CMD of EKI Energy Services and President of the Carbon Markets Association of India, said prioritising CCUS deployment across hard-to-abate sectors such as power, steel, cement, refineries and chemicals lays the foundation for industrial decarbonisation at scale. Sameer Gupta, Chairman of Jakson Group, said the Union Budget 2026–27 outlines a growth-oriented roadmap, with public capital expenditure increased to Rs 12.2 lakh crore, reflecting the government's continued focus on energy- and infrastructure-led development. Vineet Mittal, Chairman, Avaada Group, said with reforms like the Infrastructure Risk Guarantee Fund, the budget focuses on building long-term productive capacity rather than short-term stimulus.. Sumant Sinha, Founder, ReNew said balances the immediate need for employment generation among the youth with disciplined fiscal consolidation, ensuring stability without slowing momentum. Pawan Garg, Founder of Fujiyama Power Systems, said capital goods exemptions for battery energy storage systems and sodium antimonate used in solar glass production will help optimise manufacturing costs for domestic producers. He also said the indefinite duty exemption for nuclear power projects demonstrates a strong commitment to coal-free base-load power. Vinay Rustagi, Chief Business Officer at Premier Energies, highlighted provisions to develop hi-tech tooling capabilities for precision equipment and capital goods, which will reduce dependence on other countries. Chetan Shah, CMD, Solex Energy, said the announcements provide long-term policy certainty that will accelerate domestic value addition and global-scale manufacturing. Anurag Choudhary, CMD, Himadri Speciality, said basic customs duty exemptions will significantly lower capital costs for domestic battery production, making 'Make in India' energy storage solutions globally competitive. Rohit Chandra, CEO of OMC Power, said the continued focus on renewable energy, energy transition and infrastructure financing creates a favourable environment for decentralised and hybrid power solutions, especially in underserved regions. Laxit Awla, CEO, SAEL Industries, said the tax holiday for foreign cloud service providers using Indian data centres will catalyse investment and increase demand for reliable and clean power. Piyush Goyal, CEO of Volks Energie, said solutions such as battery energy storage systems will be critical for managing peak demand and ensuring grid stability. Anil Rawal, MD and CEO of IntelliSmart, said the proposed restructuring of PFC and REC signals a long-term strategy to build a resilient financial ecosystem. Yanara India CEO Naveen Khandelwal said the budget focuses on structural depth by easing duties on battery storage and solar inputs, supporting nuclear capacity, backing critical minerals and committing Rs 20,000 crore to CCUS across core sectors. Jitendra Agrawal, COO, RE equipment manufacturing business, ACME Group said for renewable equipment manufacturers, this policy clarity will encourage long-term investments, resilient supply chains, and accelerated capacity expansion. Heena Khushalani, Partner, Climate Change and Sustainability Services, EY India said ''The proposal to restructure PFC and REC to scale and improve efficiency will only strengthen the country's financing towards energy transition.''

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