APT Translations

Turning the COP28 pledge into reality and increasing renewable power capacity dramatically calls for urgent policy interventions.

Key among the anticipated announcements is the extension of the concessional corporate tax rate of 15 percent for new domestic manufacturing companies under Section 115BAB, set to expire on March 31, 2024.

The enhanced financial incentives, effective from July 16, 2024, aim to boost the utilization of the country's substantial biomass resources, which amount to an annual production of 750 million metric tonne (MMT), with 228 MMT available as surplus.

In the Indian context, the country’s commitment to ‘net-zero’ is evident through its ambitious targets of achieving 500 GW of clean energy installation capacity by 2030.

Amidst fervent electoral preparations, the interim budget emphasized fiscal prudence with a firm focus on growth capex. A lot has changed - on both expected and unexpected lines – as Shree Narendra Modi has received the people’s mandate for a historic third term and is now the leading a coalition government.

"Balancing development needs with a low-carbon pathway is a tightrope, especially when financed predominantly through domestic resources," the Survey noted, highlighting the financial strain of pursuing cleaner energy alternatives.

It added that while phasing in renewables is imperative, in the short to medium term, the focus should also be on actively adopting clean coal technologies.

The law, officially known as the Inflation Reduction Act, includes nearly $400 billion in spending and tax credits to accelerate the expansion of clean energy such as wind and solar power, speeding the nation's transition away from the oil, coal and natural gas that largely cause climate change.

According to the survey, India is the only G20 country that is on track with the global warming limit of 2 degrees centigrade, a benchmark highlighted in a recent report by the International Finance Corporation. The survey outlines India’s strategic focus on balancing climate change management with its developmental priorities.

The survey further highlighted the expansion of India's power transmission capabilities, now able to transfer 118,740 megawatts (MW) across an extensive network of 485,544 circuit kilometers with a transformation capacity of 1,251,080 mega volt amp (MVA).