Budget 2023: Rs 35,000 cr for green energy transition initiatives

The allocation of INR 35,000 crore (~USD 4.2 billion) is a priority capital investment towards the energy transition, net zero objectives, and energy security. However, it is noteworthy that of the total allocation, INR 30,000 crore was capital support to oil marketing companies (OMCs), and INR 5,000 crore was earmarked to augment India’s strategic petroleum reserves.

What activities do OMCs eventually fund against the INR 30,000 crore allocation? A range of activities will ultimately need to be financed to close the estimated average annual USD 28 billion investment gap to achieve net zero by 2070.