1) Carbon Capture, Utilization & Storage (CCUS): Allocation of INR20,000 crore (US$2.19bn) over 5 years. It’s the first large, explicit fiscal push for CCUS in India eyeing hard-to-abate sectors such as power, refineries, steel, cement, etc.
Implication: Opens a new capex + technology market for utilities, PSU refiners, EPC players, and global CCUS technology providers.
2) Customs duty exemptions: No basic custom duty on the imports of solar glass inputs, lithium-ion battery cell manufacturing machinery and capital goods for BESS.
Implication: Improves IRRs for projects and strengthens India’s clean-energy manufacturing competitiveness.
3) Higher budget allocation: Net allocation for the Ministry of New and Renewable Energy stands for 206-27 has been INR32,914.67 crore (US$3.61bn), up 30.1%, y-o-y.
Implication: Strengthens policy credibility, accelerates renewable capacity addition, and improves project bankability across India’s clean energy value chain.
4) Rare Earth: The mineral-rich states of Kerala, Odisha, Tamil Nadu, and Andhra Pradesh will be supported on setting up dedicated rare earth corridors.
Implication: Support domestic production and help establish rare earth elements supply chain in India.
5) Nuclear Energy: The government has extended customs duty exemptions for equipment used in nuclear projects till 2035, irrespective of plant size, boosting long-term cost-competitiveness and encouraging investments in clean baseload power.
Implication: Supports diversification of clean energy sources beyond variable renewables.
6) TCS on coal and lignite: The Tax Collected at Source (TCS) on coal and lignite sales has been raised to 2% from 1% as part of a wider overhaul of the TCS framework.
Implication: Symbolic signal favoring cleaner energy over time and marginal impact on buyers.