India is gearing up for an important change in how it generates and consumes energy, and the government intends to make significant changes in the next Budget for 2024.
The focus is on "green hydrogen," a cleaner and more environmentally friendly version of hydrogen. The government plans to provide financial incentives to make green hydrogen production more affordable, bringing the cost closer to that of traditional, less environmentally friendly "grey hydrogen."
To do this, the government may provide further financial assistance, such as subsidies, particularly for companies that stand to benefit the most from the use of green hydrogen, such as refining and fertilization. They also intend to redirect funds from fuels that harm the environment to programs that produce clean hydrogen. This shift is intended to help India become more energy-independent while also keeping the pledges it made to the world about decreasing its impact on the environment.
The budget will probably include expenditures in the infrastructure required for efficiently transporting green hydrogen. This involves building networks and pipelines to carry it around the country. To stimulate further research and development in this field, the government may provide tax credits and other incentives to enterprises.
India intends to become a key player in the global green hydrogen industry, not just for domestic use. This includes improving port infrastructure and developing international standards for green hydrogen goods. On a municipal level, the budget may include direct subsidies and financial support for sectors that are ready to transition to green hydrogen. This might increase demand in the country and support the expansion of sectors that use green hydrogen, such as the production of environmentally friendly steel.
In line with the move towards cleaner energy around the world, this whole method is part of a bigger plan to make India a center for green hydrogen. The government is making these reforms based on a report by the World Economic Forum and Bain & Company, and if the Budget follows this strategy, it might be a watershed moment for India's energy sector. The move makes India a leader in the world's move towards a better, lower-carbon economy and helps the country meet its energy needs in a way that doesn't harm the environment.
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Technology is a useful servant, but a dangerous master, it was rightly said. Electronic devices have grown into an inevitable part of our daily lives.
