Union Budget 2023-24: Impact on Automobile, Road Transportation, and Energy Sector

The Automobile, Road Transportation, and Energy sector are a few of the major sectors that contribute significantly towards the growth of the Indian economy. And hence, on Tuesday, Finance Minister, Nirmala Sitharaman, announced various updates regarding the same while tabling the Union Budget 2023-24. These include:-

  • 5 MMT of green hydrogen to be produced by 2030, and for the same, the recently launched National Green Hydrogen project, with an outlay of Rs 19,700 crore, will be instrumental. It would help India to lower the carbon intensity and reduce dependence on fossil fuel imports
  • Achieve net zero and transition to a sustainable energy system, for which Rs 35,000 crore has been allocated to the Ministry of petroleum and natural gas
  • 64 per cent increase in PM Awaas Yojana allocation, to Rs 79,000 crore, benefiting Commercial vehicles and tractors used for moving construction materials
  • Green fuel, energy, and building practices to be adopted as a part of the seven priorities referred to as “Saptrishi,” designed to drive sustainable and environmentally-friendly economic development
  • Relief on custom duty rates for the import of goods and machinery required to manufacture lithium-ion cells, giving a boost to local production and manufacturing
  • Exemption on denatured ethyl alcohol from basic customs duty.
  • Rs 35,000 crore will be invested in the field of energy security
  • Rs 20,700 crore to be invested in the renewable energy sector
  • The basic customs duty rate on compounded rubber is to be increased from 10% to 25% or 30 kg (whichever is lower) at par with that of natural rubber, other than latex, to curb circumvention of duties
  • 100 critical transport infrastructure projects for last and first-mile connectivity for ports, coal, steel, fertilizer, and food grains sectors identified and would be taken up on priority with an investment of Rs 75,000 crore, including Rs 15,000 crore from private sources
  • Rs 5,172 crore has been allotted for the FAME II scheme
  • Rs 2.70 lakh crore to be allotted to the Ministry of Road Transport and Highways (MoRTH) for various developmental projects

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