Green Growth-Related Announcements Went Beyond Energy Generation And Distribution Says Sujjain Talwar, Co-Founding Partner, ELP

Sujjain Talwar, Co-Founding Partner, ELP says policy announcements in the infrastructure were limited. In this brief write-up, he touches on some important ones:

1. Green Growth was one of the seven priorities mentioned by the Finance Minister. Substantial investments for energy transition, net zero objectives, energy security, battery storage systems and grid connectivity in Ladakh for evacuation of renewable energy were announced.

2. Green Growth-related announcements went beyond energy generation and distribution and included the implementation of programmes for green fuel, green energy, green farming, green mobility, green buildings, and green equipment.

3. No specific policy reforms or changes to the regulatory framework for energy were mentioned, although the power sector has been seeking clarity on issues such as the framework for virtual PPAs, sanctity of PPAs and various issues surrounding must-run status of power plants.

4. For transportation, significant budget outlay for railways was announced. Additionally, the Budget touched the identification of 100 projects for last mile connectivity for ports, coal, steel, fertilizer, and food grains sectors and the revival 50 airports, heliports water aerodromes and advance landing grounds for regional connectivity.

5. The establishment of the Urban Infrastructure Development Fund was announced for public agencies to create urban infrastructure in Tier 2 and Tier 3 cities.

6. To encourage private investment in infrastructure the newly established Infrastructure Finance Secretariat will assist all stakeholders for more private investment in infrastructure, including railways, roads, urban infrastructure and power.

7. The Vivaad se Vikaas scheme for settlement of disputes involving government undertakings where an arbitral award is challenged was announced. This could reduce pendency of proceedings and project bottlenecks. However, clarity on the conditions is required and it is hoped that private parties are not compelled to settle in unfavourable circumstances. Further, such settlement should also result in lifting of blacklisting restrictions, if any.