India Budget 2021 on Sustainability Environment

India Budget 2021 on Sustainability Environment

On 1st February 2020, Union Finance Minister Niramala Sitaraman presented the Union Budget for the year 2021-22 in the Lok Sabha. This post covers provisions of India Budget 2021 on Sustainability, Environment, Renewable Energy, Emissions & Climate Change

Sustainable Energy

  • The Union Budget for 2021-22 has laid a major focus on capturing the emerging energy transition trends — from Renewables to Hydrogen and even Smart Metering.
  • An additional infusion of Rs 1,000 crore to SECI and Rs 1,500 crore to IREDA.
  • A National Hydrogen Mission will be launched in 2021-22 for generating Hydrogen from green power sources.
  • 100 more cities to be added in the next 3 years to the gas distribution network.

Solar Energy

  • According to the budget speech, exemption to all items of machinery, instruments, appliances, components or auxiliary equipment for setting up of solar power generation projects is being rescinded.
  • Phased manufacturing plan for solar cells and solar panels to be notified
  • Duty on solar inverters raised from 5% to 20%, and on solar lanterns from 5% to 15% to encourage domestic production

Ministry of New & Renewable Energy (MNRE)

  • The allowance for the Ministry of New and Renewable Energy has stayed above ₹5,000 crores for the second consecutive year. This year, the allocation has been ₹5,753 crores to the ministry.
  • The government would increase the capacity of renewables to 450 GW by 2030.

Ministry of Environment, Forest & Climate Change (MOEFCC)

  • Budget 2022-23 allocated Rs 2869 crore for MOEFCC
  • The total allocation for the five autonomous institutes under Ministry of Environment, Forest and Climate Change (MoEF&CC) has been reduced in the Union Budget 2021-2022.
  • The bodies include:
    • GB Pant Himalayan Institute of Environment and Development,
    • Indian Council of Forestry Research and Education,
    • Indian Institute of Forest Management,
    • Indian Plywood Industries Research and Training Institute and
    • Wildlife Institute of India.


  • 100% electrification of Railways to be completed by 2023.

Agriculture & Allied Sectors:

  • Agriculture infrastructure fund  to be made available for APMCs for augmenting their infrastructure 
  • 1,000 more Mandis to be integrated into the E-NAM market place 
  • Five major fishing hubs, including Chennai, Kochi and Paradip, to be developed.
  • A multipurpose seaweed park to be established in Tamil Nadu 

Climate Change

  • Rs. 2,217 crore to tackle air pollution, for 42 urban centers with a million-plus population.
  • Voluntary vehicle scrapping policy to phase out old and unfit vehicles. Fitness tests in automated fitness centres:
    • After 20 years in case of personal vehicles
    • After 15 years in case of commercial vehicles
  • Extention of Ujjwala Scheme to cover 1 crore more beneficiaries


  • Recycling capacity of ports to be doubled by 2024
  • India Budget 2021 on Sustainability related sectors – PIB
  • India Budget 2021 on Sustainability related sectors:

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