Budget 2026-27 announced ₹20,000 crore allocation for Carbon Capture, Utilisation and Storage (CCUS) technologies. The budget provided targeted basic customs duty exemptions for clean energy supply chains: zero duty on capital goods for lithium-ion cell manufacturing, exemptions on sodium antimonate imports for solar-glass production, exemptions on critical minerals processing equipment, and removal of customs duty on several solar and wind energy components. The Revamped Distribution Sector Scheme (RDSS) allocation increased to ₹18,000 crore for power sector reforms including smart metering, AT&C loss reduction, and DISCOM financial stability. The green energy push aligns with India's COP commitments and net-zero 2070 target.
Budget 2026: ₹20,000 Crore for Carbon Capture (CCUS); Green Energy Push with Customs Exemptions
AQuick answer
₹20,000 cr for CCUS; zero duty on lithium-ion manufacturing equipment; RDSS ₹18,000 cr for power reforms; clean energy customs exemptions.
Key facts
- Budget 2026-27 allocated ₹20,000 crore for Carbon Capture, Utilisation and Storage (CCUS) technologies
- Zero customs duty on capital goods for lithium-ion cell manufacturing; exemptions on sodium antimonate for solar-glass production
- RDSS allocation increased to ₹18,000 crore for smart metering, AT&C loss reduction, and DISCOM financial stability
- Customs duty exemptions on critical minerals processing equipment and solar/wind energy components
- Green energy push aligns with India's COP commitments and net-zero 2070 target
Mains angle
Q: Evaluate Union Budget 2026's green-energy measures including ₹20,000 crore for CCUS and customs duty exemptions on clean-energy supply chains.
Answer (50 words):
Union Budget 2026-27 allocated ₹20,000 crore for Carbon Capture, Utilisation and Storage technologies. Zero basic customs duty applies to lithium-ion cell manufacturing capital goods, sodium antimonate for solar glass, critical-mineral processing equipment, and solar and wind components. The Revamped Distribution Sector Scheme received ₹18,000 crore supporting net-zero 2070.
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Environmental & Ecological ChangesScience & TechnologyService Sector, Energy & TransportIndian EconomyMonetary & Fiscal PolicyIndian Economy
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CoverageNationalSubjectScience & TechnologyExamBasic Computer Instructor · CET Graduation · CET Senior Secondary · EO/RO · LDC · Mahila Supervisor · Patwar · PTI · RAS · REET · RPSC SI · School Lecturer · Senior Computer Instructor · Senior Teacher · UPSC · Vanpal · BothSourceTata Power Blog
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Linked questionMedium
How much was allocated for CCUS (Carbon Capture) in Union Budget 2026-27?
Explanation · Correct answer B
₹20,000 crore was allocated for CCUS in five sectors: power, steel, cement, refineries, and chemicals.
Source: Tata Power Blog
Frequently asked questions
What allocation did Budget 2026-27 announce for CCUS technologies?
Budget 2026-27 announced a ₹20,000 crore allocation for Carbon Capture, Utilisation and Storage (CCUS) technologies.
Which clean energy supply chains received basic customs duty exemptions?
The budget provided zero duty on capital goods for lithium-ion cell manufacturing, exemptions on sodium antimonate imports for solar-glass production, and exemptions on critical minerals processing equipment. It also removed customs duty on several solar and wind energy components.
How did the RDSS allocation change, and what reforms does it support?
The Revamped Distribution Sector Scheme allocation increased to ₹18,000 crore. It supports power sector reforms including smart metering, AT&C loss reduction, and DISCOM financial stability.
Which climate goals does the green energy push align with?
The green energy push aligns with India's COP commitments and net-zero 2070 target.
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