Finance Minister Nirmala Sitharaman has allocated Rs 48,396 crore for the power sector in the budget 2025. It also includes New and Renewable Energy segment. In the financial year 2025-26, the allocation for this sector increased by 30 % compared to last year. Last year, the allocation in this sector was Rs 37,143 crore (revised estimate).
According to the budget documents, out of the total Rs 48,396 crore allocated for the power sector, the power ministry got Rs 21,847 crore, while the new and renewable energy will be allocated Rs 26,549 crore. The largest part of the power ministry funds (Rs 16,021 crore) will get the new scheme related to the distribution sector. The important components of this scheme include prepaid smart meeting systems and distribution infrastructure upgrade. In the budget of FY 2025, this scheme received Rs 12,665 crore.
In the budget, the transmission sector received Rs 850 crore, which is much lower than the revised estimate of FY 2025. Also, Rs 600 crore has been kept separate for Green Energy Corridors (GECS). In the revised estimate of FY 2025, the same amount (Rs 600 crore) was allocated for GECS. Government’s flagship Rooftop Solar Scheme- PM Surya Ghar: Free power scheme has received Rs 20,000 crore, which is 80 % more than Rs 11,100 crore (revised estimate).
Moneycontrol had recently reported that Surya Ghar Scheme would get great support in the budget, so that the scheme could be implemented rapidly to meet the renewable energy target. Similarly, the National Green Hydrogen Mission (NGHM) received Rs 600 crore, while in FY 2025, this mission was allocated Rs 300 crore. In addition, PM Kusum Scheme (Prime Minister Kisan Energy Safety and Upanni Maha Abhiyan) received Rs 2,600 crore, while in the revised estimate for FY 2025, the amount was Rs 2,525 crore.