New and Renewable Energy Budget 2026: Industry Expectations, Nuclear Energy Mission - What Is In Focus Today
The industry demands a budget that views renewable energy as a complex, high-tech manufacturing hub and not merely a construction activity.
Published : February 1, 2026 at 9:08 AM IST
New Delhi: As the Union Budget 2026-27 is scheduled for presentation by Finance Minister Nirmala Sitharaman today (Sunday, February 1, 2026), the Ministry of New and Renewable Energy (MNRE) is likely to move from the "planning phase" to the "execution phase."
In her last year's Budget speech, the FM had announced a Rs 20,000-crore Nuclear Energy Mission for Viksit Bharat for the development of at least 100 GW of nuclear energy by 2047. She had also announced duty exemptions for crucial minerals and capital goods for electric vehicles to step up the energy transition.
This time, the industry, however, is no longer content with merely increasing gigawatts in the power system. In order to meet the 2030 goals, the industry is now demanding a budget that views renewable energy as a complex, high-tech manufacturing hub and not merely a construction activity. It has also demanded steps to boost transmission and green finance.
Industry leaders, such as Vinay Rustagi of Premier Energies, have demanded a special package of incentives for R&D and local production of these key components.
The goal? True self-sufficiency. If Budget 2026 delivers on this, it marks the moment India stops being a "customer" of global green tech and starts being its "creator." According to industry players, the continuation of growth in renewables will depend on several factors. These include clarity in policy, financially healthy utilities and bankable PPAs, among others. Also needed are targeted interventions that will boost distributed solar, storage-linked solutions and hybrid systems.
According to Sameer Gupta, Chairman of Jakson Group, the FY27 budget presents an opportunity to refocus from headline capacity announcements to on-ground execution across the renewable energy ecosystem.
According to him, a strong policy direction in favour of distributed energy adoption, especially rooftop solar and hybrid solutions for commercial and industrial consumers, would decentralise generation, de-stress the grid, and accelerate a commercially viable clean energy transition.
OMC Power Chief Executive Officer Rohit Chandra has stated that India’s clean energy journey has reached an inflection point where affordable and long-term green finance is essential to scale distributed solar and hybrid systems. He mentioned that backing for dependable carbon monetisation frameworks could play an important role in the rapid adoption of clean energy.
In Union Budget 2025-26, MNRE was allocated Rs 26,549 crore, a 53% increase from the previous year's revised estimates. Among the highlights of the allocation were Rs 20,000 crore for the PM Surya Ghar Muft Bijli Yojana, Rs 2,600 crore for PM-KUSUM, and significant funding for the National Green Hydrogen Mission.
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