BCG+印度聯(lián)邦預(yù)算分析2023-2024-76正式版

UnionBudgetFY24

Budget

FY24

Tableofcontent

Storyinanutshell

2-10

AgricultureandAlliedIndustries

11-15

ChemicalsandFertilizers

16-18

SocialImpact

19-22

HealthcareandPublicHealth

23-28

OilandGas

29-32

PowerandRenewableEnergy

33-37

AutomotiveandMobility

38-41

Technology,Media&Telecom

42-46

ConsumerGoods

47-52

FinancialServices

53-59

Travel,Cities&Infrastructure

60-65

BuildingMaterials

66-69

MetalsandMining

70-73

Storyina

nutshell

Non-DebtCapitalReceipts(2%)

Customs(4%)

UnionExciseDuties(7%)

Non-TaxRevenue(6%)

IncomeTax(15%)

GST&OtherTaxes(17%)

Borrowings&OtherLiabilities(34%)

CorporationTax(15%)

Rupeecomesfrom…

Budget

?

States'ShareofTaxes&Duties(18%)

FinanceCommission&other

transfers(9%)

InterestPayments(20%)

CentralSectorSchemes(17%)

Defence(8%)

CentrallySponsoredSchemes(9%)

Subsidies(7%)

OtherExpenditure(8%)

Pensions(4%)

Rupeegoesto…

UnionbudgetFY24restson7pillars(Saptarishi)–(I/II)

Inclusive

Reaching

Youth

Development

thelastmile

Power

?Focuson:Agriculture,

?INR15,000CrPVTG

?PMKVY4.0forskillingto

Education&Health

developmentfundto

belaunchedtocover

?AgricultureAccelerator

providehousing,water,

Coding,AI,Robotics

fundforstartupsin

road,telecom,

courses;30SkillIndia

ruralareas

education&healthin

InternationalCentresto

?INR20lakhCrtargeted

PVTGareas

besetupacrossstates

creditoutlayforAnimal

?Centrewillrecruit

?UnifiedSkillIndiaDigital

Husbandry,Dairies&

38,800teachersand

platformforenabling

Fisherysectors

supportstaffforthe740

formalskilling

?NationalDigitalLibrary

EklavyaModel

?NationalApprenticeship

forchildrentobesetup

ResidentialSchools,

PromotionSchemeto

?Launchofmissionto

?Financialassistancefor

support47lakhyouth

eliminateSicklecell

sustainablemicro-

anemiaby2047

irrigationsystemsin

?157newnursingcolleges

droughtproneregionsof

tobeestablished

Karnataka

Financial

Sector

INR2lakhCrcollateralfreecreditschemeforMSMEs

INR30lakh,Seniorcitizensavingschemedepositlimit(upfromINR15lakh)

MahilaSammanBachatPatratoenablesmallsavingschemeuptoINR2lakhfor2yearsforwomen

Continuedsupportforpublicdigitalinfrastructure

UnionbudgetFY24restson7pillars(Saptarishi)–(II/II)

Green Unleashing Infraand

Growth thepotential Investment

ProvisionofINR35,000Crforprioritycapitalinvestmentstowardsenergytransition,netzero,energysecurityetc.

PM-Pranamtobelaunchedtopromoteusageofalternativefertilizers

10,000Bio-InputResourceCentrestobeset-upforanational-levelmicro-fertilizerandpesticidemanufacturingnetwork

GreenCreditProgrammetoincentivizesustainability

3specializedAIcentrestobesetuptodevelopAIbasedsolutionsacrosssectors

NationalGovernmentDataPolicytobeintroducedtoenableaccesstoanonymizeddata

1005Gserviceslabstobesetupforapplicationdevelopmenttobesetup

OutlayforR&Dgrantforlabgrowndiamonds

CapitalinvestmentoutlayofINR10lakhCr(33%increase)

INR2.4lakhCrcapitaloutlayforRailways(highestever)

CreationofUrbanInfrainTier2&3citiesthroughUIDF

Continuationof50-yearinterestfreeloantostategovernmentstill2024(outlayofINR1.3lakhCr)

DecodingtheBudgetArithmetic

Difference

Growth

Growth

Particulars(INRCr)

FY23BE

FY23RE

FY24BE

FY23RE—FY24BE

FY23VsFY24

FY24BEVsFY23BE

Absolute

%

Receipts

3,944,909

4,187,232

4,503,097

242,323

315,865

14.2%

Revenue

2,204,422

2,348,413

2,632,281

143,991

283,868

19.4%

Capital

1,740,487

1,838,819

1,870,816

98,332

31,997

7.5%

Expenditure

3,944,909

4,187,232

4,503,097

242,323

315,865

14.2%

Revenue

3,194,663

3,458,959

3,502,136

264,296

43,177

9.6%

Capital

750,246

728,274

1,000,961

-21,972

272,687

33.4%

Expenditureallocation

(topitems)

Interestpayments

940,651

940,651

1,079,971

0

139,320

14.8%

Transport

351,851

390,496

517,034

38,645

126,538

47.0%

Defence

385,370

409,500

432,720

24,130

23,220

12.3%

TransfertoStates

334,339

270,936

324,641

-63,403

53,705

-2.9%

RuralDevelopment

206,293

243,317

238,204

37,024

-5,113

15.5%

Pension

207,132

244,780

234,359

37,648

-10,421

13.1%

Food

206,831

287,194

197,350

80,363

-89,844

-4.6%

Source:UnionBudget2023-2024pressrelease,BCGanalysis

IndiaUnionBudgetFY24:Storyinanutshell

Focusonexpansionofinfrastructure,augmentationofconsumption,andregulationoffiscaldeficit

Agricultureand

Social

Healthcare

Travel,Cities&

Metals&

FinancialServices

alliedindustries

Impact

Infrastructure

Mining

BudgetaryAllocation1

BudgetaryAllocation:

BudgetaryAllocation:

BudgetaryAllocation:

BudgetaryAllocation:

BudgetaryAllocation:N/A

Energy&Power

Automotive

TMT

Consumer

BuildingMaterials

Chemicals

BudgetaryAllocation:

BudgetaryAllocation:2NA

BudgetaryAllocation:

BudgetaryAllocation:

BudgetaryAllocation:N/A

BudgetaryAllocation:

WinnerSector

Positive

Neutral

Negative

Source:UnionBudget2023-24pressrelease,BCGanalysis

7

ImpactofUnionBudgetFY24oncommodities

Whatgoesup? Whatgoesdown?

?Cigarettes

?Silver

?Compoundedrubber ?MobilePhones

?ImitationJewelry ?TV

?Articlesmadefromgoldbars ?Lab-growndiamonds

?ImportedHighvalueSKDandCBU ?Shrimpfeed

vehicles ?Machineryforli-onbatteries

?Importedbicyclesandtoys ?RawmaterialsforEVindustry

Importedkitchenelectricchimney

ImportedluxurycarsandEvs

8

FinancialoutlookforFY24

BudgetFY24:EconomyProjections

FY23

FY24E

GDPGrowth(%y-o-y)

7

6-6.8

CPIInflation(%y-o-y)

5.5

4.1

FiscalDeficit(%ofGDP)

6.4

5.9

2,169,905

2,204,422

2,632,281

1,804,793

1,934,771

2,330,631

Tax

Receipts

365,112

Non

TaxReceipts

269,651

301,650

FY22Actual

FY23BE

FY24BE

FactorsimpactingoutlookFY24

Riseinforeignfundsandprivate

sectorinvestment

Riskofglobalrecession

(esp.inadvancedeconomies)

Pushtoinfrastructureand

manufacturingsector

ReductioninincometaxtoimpactrevenuebyINR35,000Cr.However,increaseindisposableincomeoftaxpayerwillaidinindirecttaxcollectionandhavemultipliereffectintheeconomy

AgricultureandAlliedSectors

Strongfocusonimprovingvaluechainefficienciesthroughtechnologyandqualityinputstoenhancefarmer'sincome

Top7sectorannouncements Industryperception

1 SettingupAgricultureAcceleratorFund

2 Settingupadecentralizedstoragecapacity

3 BuildingDigitalPublicInfrastructure

LaunchingAtmanirbharBharatCleanPlantProgram

5 MakingIndiaaGlobalHubforMillets

Sustainablefarmingthroughuseofbioinputs(PM-PRANAM)

AgricultureCredittargetincreasedtoINR20

lakhCrwithafocusonanimalhusbandry,dairy,andfisheries

SectorImpact

Allsectorannouncementsaretargetedtowardsaddressingthecriticalinput-outputlinkagechallengesacrossthevaluechainandtherebyimprovingfarmproductivityandreducingpost-harvestlosses.

Thisisexpectedtoimproveprofitabilityandsupportfarmers'income.

12

MarginalriseinAgribudgetoutlaycomparedwithREoflastfiscal;continuedfocusoncorecentralsectorschemeswithconsistentbudgetallocation

Agri:BudgetAllocationforCentralSectorSchemes/Projects(INRCr)

60,000

98,980

500

100

955

800

13,625

23,000

PM-Kisan

MISS

PMFBY

FPOs

WelfareScheme

AIF

Others2

Total

[Distributionof

Pulses]

YoY:FY24BE1vsFY23BE

-12%

18%

-12%

91%

8789%

0%

-94%

-6%

YoY:FY24BEvsFY23RE1

0%

5%

10%

0%

381%

233%

-94%

2%

1.BEreferstoBudgetEstimateandREisRevisedEstimate2.ItincludesMIS-PSS,PM-AASHA,PradhanMantriKisanManDhanYojana,andNationalBeekeepingHoneyMission

13

Source:UnionBudget2023-24pressrelease;BCGanalysis

BudgetallocationincreasedforcentrallysponsoredschemescomparedwithREoflastfiscal;anewschemelaunchedtofocusonnaturalfarming

Agri:BudgetAllocationforCentrallySponsoredSchemes(INRCr)

14,676

459

7,066

7,150

RashtriyaKrishi

KrishionnatiYojana

NationalMissionon

Total

VikasYojna(RKVY)

NaturalFarming

YoY:FY24BE1vsFY23BE

-31%

-2%

-17%

YoY:FY24BEvsFY23RE1

2%

41%

22%

Overall,22%increaseinbudgetallocationforRKVYandKrishionnatiYojanacomparedwithREoflastfiscal;however,bothwitnesseddeclinewhencomparedtoBE

ThenewlylaunchedNationalMissiononNaturalFarmingaimstoaid1Crfarmerstoadoptnaturalfarmingoverthenext3years;10,000bioinputresourcecenterswillbesetup

1.BEreferstoBudgetEstimateandREisRevisedEstimate

14

Source:UnionBudget2023-24pressrelease;BCGanalysis

PMMSYreceivedhighestoutlayof2kCr,anincreaseof6%frombudgetestimatesoflastfiscal

Fisheries,AnimalHusbandryandDairying:

BudgetAllocationforCentrallySponsoredSchemes(INRCr)

327

410

2,000 600

3,431

94

Pushforfisheries:Governmenthasannouncedplanstolaunchasub-schemeunderPMMatsyaSampadaYojana(PMMSY)withanoutlayofINR6,000Crtofurtherenablethoseinvolvedinfisheries(incl.fishermen,fishvendors,and

PMMSY

Rashtriya

National

Dairy

Others2

Total

GokulMission

LivestockMission

Development

YoY:FY24BE1vsFY23BE

6%

-1%

0%

-4%

81%

4%

YoY:FY24BEvsFY23RE1

42%

0%

17%

49%

124%

31%

SMEs)andtherebyimprovevaluechainefficiencies

1.BEreferstoBudgetEstimateandREisRevisedEstimate2.OthersincludeFIDF,LivestockCensusandIntegratedSampleSurvey,andDairyingThroughCooperatives

15

Source:UnionBudget2023-24pressrelease;BCGanalysis

ChemicalsandFertilizers

Focusonmakingdomesticindustrycompetitivethroughnecessarydutycuts,subsidies,andinfrastructuredevelopment

Top4sectorannouncements Industryperception

Customsdutycutsoncertainchemicals:2.5%

dutyonacid-gradefluorspar(from5%)andcrudeglycerin(from7.5%)

Customsdutyexemptionondenaturedethyl

alcoholandcapitalgoodsformanufacturingoflithium-ionbatteries

3 IncreaseinureaandnutrientBEsubsidies

100transportinfrastructureprojects

identifiedforend-to-endconnectivityforkeysectors,incl.fertilizers

SectorImpact

Customsdutyexemptionsanddecreasestocreatealevel-playingfieldfordomesticcompanies

Dutycutsonrawmaterials,fluorsparandglycerin,tomakevalue-addeddownstreamindustrycompetitive

Dutyexemptiononethylalcoholwilldrivetheethanolblendingprogramandfacilitateenergytransition

Infrastructureprojectstoproviderequireddistributionassetstothefertilizersector,reducingcostsandassociatedrisksofsupplychaindisruption

Lookingforward,PLIstobolsterbudget

17

Significantincreaseinfertilizersubsidiescomparedwithbudgetedestimatesoflastfiscalinthewakeofriseinglobalprices

BudgetAllocation:Fertilizersubsidy

+107%

154,098

BudgetOutlay(INRCr)

131,100

100,988

63,222

+5%

71,122

52,770

42,000 44,000

UreaSubsidy NutrientBasedSubsidy

FY22AFY23BEFY23REFY24BE

Source:UnionBudget2023-24pressrelease;BCGanalysis

18

SocialImpact

KeyinsightsfromeducationsectorallocationinUnionBudgetFY24

EducationministryreceivedINR1.12CrforFY24;highestsofarand~8.3%increasefromlastyear.~60%allocationforschooleducationand~40%forhighereducation

ThebudgetpushesformitigatingCovidtimelearningloss,strengtheningteachercapacities,andpreparingbothinstitutionsandyouthfordigitaleconomy

Underschooleducationoutlay,budgetforoutcomefocusprogramme

(STARS)hasdoubledandEkalvyaModelschoolfortribalstudentshas

tripledfromlastyear;budgetcutsinscholarships

Underhighereducationoutlay,budgetsforworldclassinstitutions

hasgrownby1.25xandPMresearchfellowshipby2x;budgetcutsinscholarships2,research&innovation3,IIMs

Thekeyannouncementsseemstobeinfavorofdigitalupskillingandinfrastructure;however,budgetsforprogrammessuchasPMe-vidyaandnationaldigitallibraryareyettobeallocated

20

includesEarlyChildhoodEducation,assessments,LearningEnhancementProgrammeInformationandcommunicationtechnologyetc.

100%cutsinscholarshipsforcollegeanduniversitystudentsandspecialscholarshipforJ&Kstudents

Nationalinitiativefordesigninitiative,multidisciplinaryresearch,policyresearchinsocialscienceetc.

Budgetoutlayunderschooleducationincreasedby~8.4%andhighereducationby~8%fromlastyearbaseestimates;overallincreaseby~INR8,600Cr

InINRCr

BudgetAllocationformajorschooleducationsectorschemes

60,000

157

800

13.4%

4,000

0.2%

5,943

45.5%

11,600

40,000

197.4%

20,000

37,453

0

SamagraShiksha

PradhanMantri

EklavyaModel

PM-SHRIschools

NewIndialiteracy

StrengtheningTeaching-

PoshanShaktiNirman

ResidentialSchool

Programme

LearningandResultsfor

InINRCr

States(STARS)

Budget Budget

2023-24 2023-24

INR INR

68kCr 44kCr

10,000

5,000

0

-5.9% -0.2%

420

1,954

BudgetAllocationformajorhighereducationsectorschemes

1,500

400

-3.7%

World

class

1,554

25%

Institutions

210

100%

INR INR

63kCr 40kCr

Budget Budget

2022-23 2022-23

Studentfinancialaid

DigitalIndiaE-learning

Researchandinnovation

PMUchchatarShiksha

WorldClassinstitutions

PMResearchfellowship

Protsahan(PM-USP)Yojna

School Higher

Education Education

Source:UnionBudget2023-24pressrelease,BCGanalysis

21

Focusonteachercapacitybuilding,digitalupskillingandworldclassinstitutionstopaveapathwayforknowledge-basedeconomy

Themes

PolicyAnnouncement

?Focuson740Ekalavyaschoolsserving3.5lakhtribal

students;budgetallocationfor14,500PMShrischools

School

?Nationaldigitallibrarieswillbesetupforchildrenpush

Education

forphysicallibraries;NBTtoprovidebooks

?Teachertrainingwillbere-envisioned;DIETstobe

transformedasinstitutesforexcellence

?3centresforAIwillbesetuptoboostresearch,

Higher

knowledgeandindustrycollaboration

?157newnursingcollegeswillbesetup;

Education

multidisciplinarycoursesformedicaldevices

?100labswillbesetuptodevelopappsusing5G

servicesinengineeringcolleges

?PMKVY4.0tobelaunchedwithafocusondigital

Skilling

upskilling(coding,robotics,IoTetc.)

?UnifiedSkillIndiaDigitalPlatformtobelaunchedfor

upskilling;accesstoschemes,linkagewithemployers

?30SkillIndiaInternationalCentrestobeestablishedfor

preparingyouthforglobalmarketopportunities

Source:UnionBudget2023-24pressrelease,BCGanalysis

Impact

Inculcatingreadinghabit,communityparticipationandaccesstodigitalresourceswilldiversifytheongoingapproachestomitigatelearningloss

Upskillingofteacherswillbeinstrumentaltobuildthemas21stcenturyfacilitatorandimprovelearningoutcomes

StrongimpetusonR&D,industrycollaborationsandpreparinginstitutionsfordigitaleconomywillimproverelevanceandappealofhighereducationforstudents

Strengthenedfocuson"skillingbasedonmarketneedsandglobaltrends"willenhancebothrelevanceandoutputs;therebyincreasingemployabilityamongyouth

22

Healthcare&

PublicHealth

Healthcareinfrastructure,innovation&publichealthemergeaspriorities;totalallocationatINR2.1lakhCrwith5.5%hikeYoY

1

2 3

Research&innovation

pushthrough

pharmaceuticalR&D

programandsettingup

CentersofExcellence

Public-privateresearch

partnershipbymaking

ICMRfacilitiesavailable

toprivateplayers

Boldambitionto

eradicateSickleCell

Buildingfuturehospital

Anemiaby2047bysmart

workforcebyestablishing

publichealthsystem

157newnursingcolleges

management

Gainingtechedgeby

settingup

multidisciplinarycourses

formedicaldevicesatexistinginstitutestoupskillforfuturisticmed-techandhigh-endmanufacturing

4 5

HCsectorincludesallocationtoMoHFW,AYUSH,Nutrition,DoP,DBT,DowaterandsanitationandFCgrants

24

Source:UnionBudget2023-2024pressrelease;BCGanalysis

Positiveoutlookfortheindustrywithapushfor'DiscoverinIndia'andcreatingskilledworkforceforthefuture

Top5sectorannouncements Industryperception

Pushforpublic-privatepartnershipinpharmaR&D,manufacturingthroughICMRlabs

Boosttohealthinfrastructurebyestablishing157newnursingcolleges

Creatingskilledmanpowerthrough

multidisciplinarycoursesfor

futuristicresearch&manufacturingofmedicaldevices

3ArtificialIntelligenceCoEstobesetupfor

interdisciplinaryresearch,developcuttingedgeapplications&scalablesolutions

MissiontoeradicateSickleCellAnemiaby2047

SectorImpact

Futuristicbudgetcoveringdifferentfunctionstopotentiallydeliverresultsinthemid-to-longterm

However,agapinhealthcarespendingremains,whichisstilllessthan2.5%ofGDP

Lackofinitiativesaddressingnon-communicablediseasesburden,customdutyinmedicalequipment

25

~40%YoYriseinbudgetallocationforpharmaceuticals;marginal3.8%increaseYoYinallocationtoMoHFW

INRCr

R&Dinnovationpush

77,224

210,275

throughfocusonmedical

MinistryofHealthandFamilyWelfare

deviceandbulkdrug

parks

(MoHFW)

13,851

3,160

2,684

3,648

20,554

34,625 2,980

36,785 7,200 4,200 3,365

NHMPMJAYPMABHIMPMSSYDoHFW

DoHRNutritionFC

DoP

DBTMinistryDoWSTotal

-Others

Grants

of

for

AYUSH

health

Budget

2023-24

INR

3.160

Cr

+40%

INR

2,244

Cr

Budget

2022-23

DoP

Budget

2023-24

INR

86,175

Cr

+3.8%

INR

83,000

Cr

Budget

2022-23

DoHFW

Note:NHM:NationalHealthMission;PMABHIM:PMAyushmanBharatHealthInfrastructureMission;PMSSY:PardhanMantriSwasthyaSurakshaYojana;DoHR:Department

ofHealthResearch;DoP:DepartmentofPharmaceuticals;DBT:DepartmentofBiotechnology;DoWS:DepartmentofWaterandSanitation;DoHFW:DepartmentofHealth

26

andFamilyWelfare;Nutrition:SAKSHAMAnganwadiandPOSHAN2.0

Source:UnionBudget2023-2024pressrelease;BCGanalysis

Progressiveinitiativesfocusingoninnovation,digitalhealth&upskillingtheworkforce

Themes

Pushfor'DiscoverinIndiathroughR&Dinnovation

AdvancingdigitalhealththroughAI

Buildingfuturemedicaldeviceinfrastructure

PolicyAnnouncement

AllocationofINR1,250Crtosetupbulkdrugparks,medicaldeviceparks,technologyupgradationandsettingupofcommonfacilitiesinpublic-privatepartnership

SettingupofCentersofExcellencetopromotepharmaR&D

ResearchandlaboratoryfacilitiesatICMRlabstomadeavailabletopublicandprivateplayerstopromotecollaborativeresearch

AllocationofINR341CrtoNationalDigitalHealthMission,anincreaseof70%YoY

CentersofExcellenceforArtificialIntelligenceattopeducationalinstitutionsinpartnershipwithindustryplayerstoconductinter-disciplinaryresearch

AllocationofINR200Crformedicaldeviceparks

AllocationofINR1,000Crforproductionlinkedincentiveschemefordomesticmanufacturingofmedicaldevices

Multidisciplinarymedicaldevicecoursestoupskillmanpowerinadvancedmedicaldevicetechnologies,high-endmanufacturingandresearch

Impact

MovingbeyondmakeinIndiabystrengtheningR&Decosystem

Bulkdrugparkstolowerthecostofmanufacturing

? Enhancingpublic-privatepartnershipinpharmaceuticalresearch

Lackofdefinedroad-mapforthepharmaR&Dprogram

? Strengtheningdigitalhealthinfrastructure

? PositivesteptowardsachievingthegoalofUniversalHealthCoverage

Accesstostandardizedtestingfacilitiesandinfrastructure

Localmanufacturingwillreducethe

costofproductionandimproveaffordabilityandaccess

Source:UnionBudget2023-2024pressrelease;BCGanalysis

27

Renewedcommitmenttowardsimprovinguniversalhealthcoverage,betternutritionaloutcomesandreducingdiseaseburden

Themes

PolicyAnnouncement Impact

Promotinguniversalhealthcoverage

Maximizingnutritionaloutcomes

Expandingmedicaleducationinfrastructure

Reducingdiseaseburden

AyushmanBharat-PradhanMantriJanArogyaYojna(PMJAY)allocatedINR7,200Cr,upbyINR743Cror11.5%YoY

PradhanMantriAyushmanBharatHealthInfrastructureMission(PMABHIM)allocatedINR4,200Cr;riseofINR23Cror0.55%YoY

SakshamAnganwadiandPOSHAN2.0schemesreceivedanallocationofINR20,554Cr,1.44%hikeYoY

Settingupcentersofexcellenceformilletproduction

Settingupof157newnursingcollegestoincreasehospitalindustryworkforce

PardhanMantriSwasthyaSurakshaYojana(PMSSY)receivesanallocationofINR3,356Cr,a60%dipYoY

ProgramtoeradicateSickleCellAnemiaby2047throughuniversalscreeningintribalareasintheagegroup5-40years,creatingawarenessandcounselinginitiatives

Increasedcoveragetoincludeadditionalgroups*

Preparinghealthsystemsforeffectivepandemicpreparedness

Improvingservicedeliverythrough

qualityinfrastructureandresourcesinAnganwadi

? Milletconsumptioncanpotentiallyenhancehealthbenefitsinlifestylediseasessuchasdiabetes

Positivesteptowardsimprovingnursetopatientratio

Reducingdiseaseburdenthroughtargetedinterventionwithendemicpopulations

*Additionalgroupsyettobedefined,potentiallybeyondbelowpovertyline(BPL)groups

28

Source:UnionBudget2023-2024pressrelease;BCGanalysis

Oil&Gas

Energysecurity&Energytransitionremainedthekeyfocusareasforthesector

1

2 3

FocusingonenergysecuritygovernmentallocateINR5,710CrbudgetfortheconstructionofcavernsPhaseII(SPR)withanaggregatecapacityof12.5MMT

TomeettheNet-Zero

targetby2070

governmentfunneleda

CAPEXofINR35,000Cr

towardsEnergytransition

impactingpower&

renewablesector

PradhanMantriJI-VAN

AsOMCsuffersa

YojanasetsINR226Cr

cumulativelossesofINR

budgettosupport2G

27,276Crinfirsthalfof

Bioethanolprojects

FY23governmentgives

underNationalBio-fuel

INR30,000Crascapital

fund

support

INR1,633CrhavebeenbudgetedfornewLPGconnectionstoBPLhouseholdswithapreferencetoNorth-Easternpartofthecountry.

4

5

Source:UnionBudget2023-2024pressrelease;BCGanalysis

30

Sectortofocusonlowcarbonfuelfulfillingcountry'sNetZerotarget

Topsectorannouncements Industryperception

NationalGreenHydrogenMission,withan

outlayofINR19,700Crtofacilitatetransitionoftheeconomytolowcarbonintensity&reducedependenceonfossilfuelimports

Topromotegreenmobilityinthecountry

blendedcompressednaturalgasisexemptedfromexciseduty

PromotingtheEthanolblendingprogram(EBP)

basiccustomduty(5%)isexemptedfromtheDenaturedethylalcohol

AnincreaseinimporttaxonNaphthato2.5%

from1%willpushdomesticproductionofkeychemicalfeedstock

Sub-sectorImpact

Refinery&PetrochemicalIndustrytointegraterenewablehydrogenproductionattheirfacility

IncreasedactivitiesinEPCsector,overallgrowthofsector

Source:UnionBudget2023-2024pressrelease;BCGanalysis

31

Allocation:SteepCapitalallocationtoOMCwithstatesmissingoutoncentralgovernmentroyalties

BudgetAllocation BudgetAllocationFY24break-up

(INR'000Cr)

(INR'000Cr)

TotalLPGsubsidydecreasesby75.4%andKerosenesubsidydropstozero

50

+21%

41

40

34

30

20

10 6

0

FY22 FY23 FY24

Source:UnionBudget2023-2024pressrelease;BCGanalysis

42

1.8

0.5

41.0

40

30.0

8

5.7

0.2

2.3

0.0

0.5

0

0.0

Royalty

Payment

Refinery

LPG

Kerosene

NRL

Capital

Indra-

Others

Total

payments

to

&

Subsidy

Subsidy

ExpansionSupport

dhanush

to

Strategic

conse-

to

GasGrid

states

oil

rvation

OMC

reserves

32

Power&

Renewables

KeyhighlightsforPowerSector&RenewableEnergy

FocusonGreenIndustrialandEconomicgrowth

GreenEnergyCorridor:ProvisionofCFAforcapacityadditionofcumulative6,000ckmtransmissioninfrastructure

CFAforSHPonandoff-grid

Solartoremaingreentransitionmainstay,with

On-GridINR5,000Crbudgetaryprovision

Off-Grid

–Installationof3lakhsolarstreet-lights,distributionof25lakhsolarstudylamps

Installationofsolarpowerpacksoftotalaggregatedcapacityof100MWp.

AJAYPhase-II:installationofover3lakhsolarstreet-lights

? 20MWeqProjectsofConcentratedSolarThermal(CST)

Strongpushtowindenergyprofile,INR1,214Crofbudgetaryprovision

CFAforBio-Energyprojects,totalbudgetaryoutlayofINR505Cr

BudgetallocationofINR2,902CrforstrengtheningPowerSystems

ProvisionofINR12,000Crforreformsindistributionsector

VGFFundingforPumpStoragePlantsandbatteryEnergyStorageSystems

CFA–CentralFinancialAssistance

SHP–SmallHydroPlant

34

VGF–VisibityGapFunding

Cleanandgreenenergyinitiativestoensurestablerenewablesgrowth

Top4sectorannouncements Impact

1

2

3

4

RenewableEnergyEvacuation:Inter-Stateintegrationof13GWRenewableEnergywithtotalinvestmentofINR20,700CrincludingINR8,300Crofcentralsupport

EnergyTransition:INR35,000Crforprioritycapitalinvestmenttowardsenergytransition,netzeroandenergysecurity

BatteryEnergyStorage:VisibilityGapFundingfor4,000MWhcapacityandpushtopumpedstorageprojects

GreenCreditProgramme:Incentivizingenvironmentallysustainableandresponsiveactionsbycompanies,individualsandlocalbodies

Improvedandenhanced

greenfinancingsolutions

Renewablestoremainmajorfocus;boosti