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Budget 2020: Allocations for power sector

Budget for the financial year (FY) 2020-21, has been allocated ₹220 billion (~$3.08 billion) for the power and renewable sector and is more emphasized on the expansion and adoption of solar as sustainable source of power for millions.

Govt has decided to reinforce the PM-KUSUM program with two million off-grid and 1.5 million on-grid solar pumps. Indian Railways have around 2700 km of railway tracks and government proposes to add solar capacity along railway tracks. Indian Railways may turn out to be a big boost to the renewable energy sector. This budget has also addressed the challenges of severe water stress in the nation, this budget gets to the bottom of things by proposing comprehensive measures for 100 water-stressed areas.

Budget 2020 also aims to empower farmers by increasing their dependence on off-grid solutions with solarized grid-connected pumps through the PM-Kusum program.

The government also intends to promote smart metering to bring down the commercial losses in the distribution companies, coupled with the consumers having the ‘choice of suppliers’, may resolve the long-term viability issues of the power sector.

The budget had announcements is poised to improve the industry sentiment in the coming months. It is likely that KUSUM programme will act as a catalyst to sustainable irrigation solutions across the country. The usage of solar in the railways and farming and usage of farmlands for solar projects could open up new entrepreneurial opportunities and help in faster adoption of solar energy across the country.