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Two of the country’s primary institutions – the Indian Renewable Energy Development Agency (IREDA) and the Solar Energy Corporation of India (SECI) — tasked with escalating the thriving renewable industry have received an increase in expenditure budget of 143% in the Union Budget for 2022. Both agencies are in public sector undertakings (PSUs) that are administered by the Ministry of New and Renewable Energy (MNRE).
The Central Government has recommended a total expenditure of Rs. 28,570.99 crore by IREDA and SECI for the forthcoming fiscal year. This compares to an anticipated budget expenditure of Rs. 11,778 crore the previous year.
The revised spending by IREDA and SECI in the current fiscal year now stands at Rs. 21,474 crore, indicating that the renewable industry, particularly solar power, has received a significant boost. As a result, if the current increase is compared to the actual budgeted spending in FY23, it is 33% greater.
In the Budget for FY23, the government increased IREDA’s expenditure by a stunning 150% to Rs 27,572 crore, while the budget expenditure in FY22 was Rs 11,017 crore.
In comparison to the revised spending of Rs 19,639.74 crore by IREDA in FY22, the company’s budget expenditure in FY23 is almost 40% more.
SECI, a smaller organization than IREDA, has its expenditure budget increased by 31% in FY23 to Rs 998 crore. However, when analyzed to the revised expenditure of Rs. 1,834 crore in FY22, SECI’s budget outlay for the next fiscal year is 46% lower.
This effort was predicted, given India’s pledge to the global community, to have 500 gigawatts (GW) of renewable energy capacity by 2030, and being the world’s second-largest power user, vowed to become carbon-neutral by 2070.
Furthermore, an increase in budgetary allocation is required since the government also plans to boost the share of renewable energy sources in the country’s power generation to more than 50% by the end of this decade.
This is further strengthened by India’s commitment to the international community under the Paris Agreement to construct 175 GW of renewable energy capacity by 2022.