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LIVE: Union Budget 2023-24: Updates For The Automobile, Road Transportation, and Energy Sector

In the Lok Sabha, Finance Minister Nirmala Sitharaman is presenting the Union Budget for FY 2023-24. This is the last full budget of the second term of the Modi government. Here are some highlights for the automobile, transportation and energy sector: –

  • By 2030, the govt aims to produce 5 MMT of green hydrogen. The minister says that the recently launched National Green Hydrogen with an outlay of Rs 19,700 crore will help in transitioning the economy to low carbon intensity and reduce dependence on fossil fuel imports. We aim to reach an annual production of 5 million metric tons by 2030.
  • To achieve net zero and transition to a sustainable energy system, Rs 35,000 crore has been allocated to the Ministry of petroleum and natural gas.
  • Commercial vehicles and tractors used for moving construction materials will benefit from the 64 per cent increase in PM Awaas Yojana allocation to Rs 79,000 crore.
  • To reduce carbon intensity and create new jobs, the budget 2023 emphasizes the adoption of green fuel, energy, and building practices. The seven priorities, referred to as “Saptrishi,” are 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. This will boot local production and manufacturing of Li-On batteries.
  • Exemption on denatured ethyl alcohol from basic customs duty.
  • Old government vehicles, irrespective of state or central, will be scrapped. The FM said: We have allocated adequate funds to scrap old vehicles of the Central Govt. States will be supported in replacing old vehicles and old ambulances.
  • 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 has been increased from 10% to 25% or 30kg (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 have been identified. They will 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 has been allotted to the Ministry of Road Transport and Highways (MoRTH).