Page 59 - Policy Economic Report - July 2025
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July 2025 POLICY AND ECONOMIC REPORT
OIL & GAS MARKET
on this sun-blessed land, we are not merely inaugurating a facility we are heralding a new era of energy,
hope, and self-reliance,” he said.
Union Minister Pralhad Joshi Highlighted Five Pillars Driving India’s Clean Energy Transformation
Highlighting the Government of India’s focused push for a resilient and self-reliant renewable energy
sector, Union Minister for New & Renewable Energy, Shri Pralhad Joshi, outlined five key priorities driving
India’s clean energy transition- strengthened power purchase agreements (PPAs), robust grid and storage
systems, domestic manufacturing, land-use optimisation, and enhanced access to finance.
Addressing Mercom India Renewables Summit in New Delhi, the Minister said that these strategic reforms
are propelling India towards its 2030 target of 500 GW non-fossil capacity. Shri Joshi said that under the
leadership of Prime Minister Shri Narendra Modi India is not only delivering on its commitments but
accelerating them.
The Minister informed that India has already crossed 50% of its installed power capacity from non-fossil
sources, five years ahead of its Nationally Determined Contribution (NDC) timeline. The current installed
renewable energy capacity exceeds 245 GW, with 116 GW solar and 52 GW wind. The Minister cited the
latest International Renewable Energy Agency (IRENA) study, noting that India’s renewable energy
expansion in 2024 helped the country save nearly ?4 lakh crore by avoiding fossil fuel imports and
pollution-related costs. This includes $14.9 billion in fossil fuel savings, 410.9 million tonnes of CO2
avoided, and $31.7 billion worth of health and air pollution benefits.
The government is facilitating this growth through landmark initiatives such as the PM Surya Ghar: Muft
Bijli Yojana, which has received over 58.7 lakh applications and resulted in 17.2 lakh completed rooftop
solar installations. To ensure financing and stability in the sector, a ?5,400 crore Viability Gap Funding
(VGF) scheme for 30 GWh of Battery Energy Storage Systems (BESS) has been launched, expected to draw
?33,000 crore in investments.
A comprehensive transmission plan for evacuation of 500 GW of non-fossil capacity by 2030 has been
formulated in coordination with the Ministry of Power, CEA, CTU, and POWERGRID. The Minister also
announced expansion of the Approved List of Models and Manufacturers (ALMM) and the upcoming
implementation of List-II for solar PV cells from June 2026. The ?24,000 crore Production Linked Incentive
(PLI) scheme is enabling India to build Aatmanirbharta in solar and wind manufacturing.
To promote innovation and responsible land use, the Ministry is supporting floating solar, canal-top solar,
agrivoltaics, and projects in tribal and remote regions. MSMEs and startups are also being empowered to
drive clean energy innovations at scale. Further, the National Green Hydrogen Mission is progressing
rapidly, with ?19,744 crore outlay, allocation of 3,000 MW electrolyser capacity, and approval of over 8.6
lakh tonnes per annum of green hydrogen production.
Union Cabinet Approved Investment Exemption for NLCIL to Accelerate Renewable Energy Growth
The Cabinet Committee on Economic Affairs chaired by the Prime Minister, has approved a special
exemption for NLC India Limited (NLCIL) from the prevailing investment guidelines applicable to Navratna
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