Budget 2022 Focusses on Enabling Energy Transition via Provisions for Boosting Domestic Industry: IEEMA

The Indian Electrical and Electronics Manufacturers Association (IEEMA) has welcomed the Union Budget 2022 announced by the Union Finance Minister Nirmala Sitharaman and termed it as progressive and growth-oriented.

Some of the welcome features of the Union Budget 2022 include a clear emphasis on energy transition through various measures viz: boost to solar energy, storage, battery and e-mobility, IEEMA said.

This will pave the way to achieving India's commitment on tackling clean energy and tackling climate change. This shows a pathway to the Government vision for India@2047, it added.

Reacting on the budget, Vipul Ray, President, IEEMA, commented, “IEEMA welcomes the Union Budget 2020. Its clear focus on transition on energy transition through various measures that give boost to solar energy, storage, battery and e-mobility will pave the way to achieving India’s commitment on tackling clean energy and tackling climate change. The zero fossil fuel policy, Battery swapping policy and focus on charging infrastructure for EV ecosystem will provide the impetus to a future ready electrical and allied electronics sector.”

He mentioned this in the IEEMA interaction on Union Budget with captains of the electrical industry. IEEMA welcomed the increased focus on infrastructure through Gati Shakti master plan and Atmanirbharata in Defence that will open up more business opportunities for electrical and allied electronics industry.

Vipul Ray added that “The introduction of e-Bill System for reducing delays in payments is a progressive step. IEEMA thanks the Hon’ble Finance Minister for her announcement allowing use of surety bonds as a substitute for bank guarantee as acceptable in Government procurements. This will improve the working capital of suppliers and work contractors. This has been IEEMA’s long standing demand.”

Rohit Pathak, Senior Vice President, IEEMA stated that “We are happy that the Union Budget maintains the continuity of focus on increased infrastructure spending coupled with AtmaNirbharta. To facilitate domestic manufacturing and to meet the ambitious goal of 280 GW of  installed solar capacity by 2030, the additional allocation of Rs 19,500 cr for Production Linked Incentive scheme (PLI) for manufacturing of high efficiency modules is very welcome step. The idea to facilitate funding for clean energy projects and further targeted PLIs for e-mobility and clean energy value chain have the potential to change the course of India’s energy roadmap.”

Hamza Arsiwala, Vice President, IEEMA, stated, “Battery swapping and support for distributed renewable energy projects are also critical announcements. Distribution sector is critical to achieving the vision of clean energy transition. Overall, this is a budget that we welcome with enthusiasm.”

“The budget is a fine balance to support economic recovery. The inclusion of green bonds in the borrowing plan is an interesting innovation. In terms of specific policy announcements, the move towards self-reliance through shield for domestic manufacturers i.e. calibration of custom rates to boost manufacturing of electronics, including smart meters supports the long-term goal of AatmNirbhar Bharat,” said Supushpa Kaushal, Chairman, Economic & Taxation Cell – IEEMA.

Charu Mathur, Director General, IEEMA cited, “This is a progressive budget with emphasis on Renewable sector, Digitalisation, EV and investment on infrastructure projects will create huge opportunities for our IEEMA members to scale up their Business.”