Budget allocation to energy transition not subsidy; fund to be used for refinery upgrade: FM

Stating that budget allocation of ₹35,000 crore towards energy transition is not a subsidy, finance minister Nirmala Sitharaman on Friday said the fund will be deployed towards upgrading machineries at the refineries in line with the green agenda of the government and ensuring that our strategic reserves are filled up adequately. The minister also pointed out that the government has not kept anything secret in the budget.

"This Budget provides ₹35,000 crore for priority capital investments towards energy transition and net zero objectives, and energy security by ministry of petroleum and natural gas," Sitharaman had said in her Budget speech.

During a press conference after industry interaction in Bhubaneshwar on Friday, Sitharaman said, "As regards the allocation to energy transition in the budget, it is not a subsidy which is being given indirectly. It is clearly on two grounds. One we have to do a transition from fossil fuel to renewable energy. Many of the public sector refineries will have to have a change of plant and machinery so that they update machine capacities and be ready also for the blending of the fuel."

"You will be bringing in the bio fuel. We are also bringing in ethanol. So the refineries will have to be upgraded," she added.

"Secondly, we also want to ensure that our strategic reserves are filled up adequately. So this is being specifically and openly being given to the ministry of natural gas and with these objectives. In fact I would like to say that in the last three four years, the budgets do not show anything for the reason they are not mentioned. They show for what purpose they are. There is no below the carpet agenda or keeping something secret in it. So the budget states it and spends it on those grounds," said Sitharaman.