1. The budgetary allocation to the Ministry of New and Renewable Energy has seen a significant increase from ₹1,535 crore in FY 2015 to ₹32,626 crore in FY 2025, though most allocations between these years have been underutilized with lower revised estimates.
2. The PM-KUSUM scheme was launched in 2019 with an outlay of ₹34,422 crore to establish off-grid solar irrigation pumps and grid-connected solar plants on fallow farmlands, but has achieved less than half a gigawatt of installed capacity.
3. India made a significant commitment at COP26 in 2021 to produce 50% of its energy requirements from renewable sources by approximately 2026, following the realization of energy transition's importance during COVID-19 related supply chain disruptions in coal, oil, and gas.
4. The 2021 Budget introduced a Production Linked Incentive (PLI) scheme worth ₹18,100 crore for advanced chemistry cell manufacturing to enhance India's grid-scale battery storage capacity, followed by a PLI scheme for solar photovoltaic modules that increased from ₹4,500 crore to ₹19,500 crore in 2022.
5. The government imposed a 40% basic customs duty (BCD) on solar modules and 25% on solar cells to reduce dependence on Chinese imports, which resulted in slower nationwide solar power installations due to increased prices.
6. Despite renewables constituting 46% of India's total installed capacity as of October 2024, 70% of power output continues to come from coal, with experts emphasizing the need for grid-scale battery storage technology to address intermittent renewable energy production.
7. The government has recently announced exemptions from Basic Customs Duty for 12 critical minerals and 35 capital goods, recognizing that high BCDs could be inflationary and counterproductive for localizing production, particularly in lithium-ion battery technology.
8. With the United States withdrawing its leadership position, India needs to take a more prominent role in developing a critical minerals framework that ensures socially and environmentally just extraction practices and equitable distribution.
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