Follow India Renewable Energy News on WhatsApp for exclusive updates on clean energy news and insights

NCAER Recommends Rs14,000 Cr Annual Green Grant to States for Achieving 2030 RE Goals

A recent working paper by the National Council of Applied Economic Research (NCAER) has proposed that the 16th Finance Commission allocate an average annual green grant of Rs14,000 crore to states over the next five years. This funding aims to help India achieve its ambitious target of 500 GW of renewable energy capacity by 2030. The paper emphasizes the need for public investment to drive the renewable energy transition, given the high capital costs, emerging technologies, and financial challenges faced by DISCOMs. Jharkhand tops the list with a suggested yearly grant of Rs4,300 crore, followed by Maharashtra, Chhattisgarh, Madhya Pradesh, Odisha, and others. While the 15th Finance Commission included ecological criteria in its devolution formula, its allocation of Rs419 crore per year for RE was deemed insufficient.

The new proposal advocates for performance-based green grants linked to climate targets, energy access, and fossil fuel reduction. States like Chhattisgarh, Gujarat, and Jharkhand have shown notable commitment through higher RE budget allocations, while others are balancing conventional and clean energy priorities.