Relevance: GS III (Infrastructure: Energy & Science/Tech) | Source: Union Budget Documents 2026-27
1. The Green Transition: Moving to Net Zero
The budget balances renewable expansion with pragmatic solutions for heavy industries to meet the Net Zero 2070 target.
- Solar Push: The PM Surya Ghar Muft Bijli Yojana remains the flagship scheme with an allocation of ₹22,000 Crore. Solar energy now commands over 70% of the Renewable Ministry’s budget.
- Cleaning the “Hard-to-Abate”: A massive ₹20,000 Crore is earmarked for Carbon Capture, Utilisation, and Storage (CCUS).
- Why? Industries like Steel, Cement, and Thermal Power cannot simply switch to batteries; they need technology to capture carbon directly from their chimneys (“Point-Source Capture”).
- Duty Cuts: To boost local manufacturing, Basic Customs Duty has been cut to Zero on:
- Sodium Antimonate: A key raw material for making Solar Glass.
- Li-ion Equipment: Machinery needed to make battery cells.
2. The Digital Backbone: “Hardware” over “Software”
Moving beyond IT services, India aims to become a hub for physical digital infrastructure.
- Data Centers: To attract global tech giants, the budget offers a Tax Holiday until 2047 for foreign companies setting up data centers in India.
- Safe Harbour: The turnover limit for “Safe Harbour” (which protects companies from tax litigation) has been raised to ₹2,000 Crore.
- Semiconductors (ISM 2.0): The focus has shifted from just “assembly” to “design and components.” The outlay for Electronics Component Manufacturing (ECMS) has nearly doubled to ₹40,000 Crore.
UPSC Value Box
| Concept / Term | Relevance for Prelims |
| “Hard-to-Abate” Sectors | Heavy industries (Steel, Cement, Chemicals) where decarbonization is difficult because fossil fuels are integral to the chemical process (not just for power). CCUS is often the only solution for them. |
| Safe Harbour Rules | A legal provision that reduces tax liability or scrutiny if the taxpayer meets certain conditions. Increasing its limit provides fiscal certainty to large MNCs operating in India. |
| Sodium Antimonate | A chemical compound used as a fining agent in the glass industry. It is critical for producing high-quality Solar Glass (used in PV panels). |
Q. With reference to Carbon Capture, Utilisation, and Storage (CCUS) technologies mentioned in the Union Budget, consider the following statements:
- CCUS is primarily targeted at “hard-to-abate” sectors such as steel, cement, and thermal power generation.
- “Point-Source Capture” involves capturing carbon dioxide directly from the atmosphere using giant fans.
- The budget creates a dedicated fund for deploying indigenous CCUS technologies.
Which of the statements given above is/are correct?
(a) 1 only
(b) 1 and 3 only
(c) 2 and 3 only
(d) 1, 2 and 3
Correct Answer: (b)
Share This Story, Choose Your Platform!
Start Yours at Ajmal IAS – with Mentorship StrategyDisciplineClarityResults that Drives Success
Your dream deserves this moment — begin it here.
