The Union Budget 2026–27 has placed sustainability and long-term energy security at the centre of India’s infrastructure and industrial strategy, announcing a Rs 20,000 crore outlay over five years for Carbon Capture, Utilisation and Storage (CCUS) technologies.
The CCUS programme will focus on large-scale deployment across emissions-intensive sectors, including cement, steel, power, refineries and chemicals, enabling decarbonisation while sustaining industrial output and infrastructure development. The initiative is aligned with India’s broader climate commitments, while recognising the need to balance emissions reduction with economic growth.
In parallel, the Budget extended basic customs duty exemptions on capital goods used for battery energy storage systems, along with exemptions for critical mineral processing, solar glass manufacturing, and nuclear power projects until 2035. These measures are intended to strengthen clean energy supply chains, support energy transition technologies, and ensure long-term availability of power for infrastructure and industrial expansion.
Commenting on the Budget’s green infrastructure focus, Neeraj Akhoury, Managing Director, Shree Cement Limited, said, “The Union Budget’s strong focus on infrastructure and balanced regional growth is encouraging.” He added that “the proposed Infrastructure Risk Guarantee Fund will boost lender confidence and help attract private investment,” while noting that “the support for CCUS is timely and reinforces the importance of clean technologies in decarbonising hard to abate industries.”
The combined thrust on CCUS, clean energy infrastructure and duty exemptions for energy-related capital goods is expected to accelerate adoption of low-carbon technologies, enhance energy resilience, and support sustainable growth across core infrastructure and manufacturing sectors.