Clean Energy Transition: Funding, PLIs and Coal Reliance
Why in the news
India’s clean energy push has gathered pace, but unspent funds, fossil fuel reliance and supply chain limits persist.
Key facts
- MNRE budget: ₹32,626 crore in 2025 BE versus ₹1,535 crore in 2015 BE; outside 2015 and 2023, provisions were revised down for lower spending.
- PM-KUSUM (2019): off-grid solar pumps and grid-linked solar plants on fallow farmland; ₹34,422 crore; only partly successful due to weak response.
- COP26 (2021): pledge of 50% energy from renewables in five years, after COVID-19 supply breaks highlighted self-reliance.
Policy steps
| Measure | Detail |
|---|---|
| PLI, advanced chemistry cell batteries | ₹18,100 crore |
| PLI, solar PV modules | ₹4,500 crore, later ₹19,500 crore |
| BCD on solar modules / cells | 40% / 25% |
| Critical minerals relief | 12 minerals, 35 capital goods exempt from BCD |
Problems
- Solar duties aimed to cut reliance on China but raised costs and slowed installations.
- Coal remains dominant; grid-scale battery storage is the key bottleneck.
Way forward
- Build a sustainable, just critical minerals framework.
- India could lead global energy transition policy as the US steps back.
Exam angle
- Nodal ministry: Ministry of New and Renewable Energy.
- Related: PM-KUSUM, PLI schemes.