Mumbai: The Union Budget for 2025-26 has provided for a Budgetary allocation of Rs 500 crore for the wind energy sector, a 37.5 per cent drop over the previous Rs 800 crore provided in the Expenditure Budget document for 2024-25.
“The reduction in allocation to the wind sector in the FY26 Union Budget must be because of the reduction in requirement for generation-based incentive, which is paid out to wind power projects commissioned prior to April 1, 2017,” Vikram V, vice-president, co-group head – corporate ratings, ICRA, told ETEnergyWorld.
Finance Minister Nirmala Sitharaman in her Budget speech announced the National Manufacturing Mission which aims to support the production of wind turbines, solar PV cells, EV batteries, motors and controllers, electrolysers, high-voltage transmission equipment, and grid-scale batteries to boost domestic manufacturing and ensure energy security.
“In manufacturing, sector-specific incentives and the development of global manufacturing clusters will position India as a global leader in renewable energy components, wind turbines, batteries, and green hydrogen,” said Vineet Mittal, Chairman, Avaada Group.
He added that the National Manufacturing Mission for MSMEs will drive innovation, fostering sustainable local industries while contributing to India’s export competitiveness.
The country currently has the fourth highest wind installed capacity in the world.
The government is promoting wind power projects in the entire country through private sector investment by providing various fiscal and financial incentives.
The government, through National Institute of Wind Energy, which carries out research and development in wind energy, has installed over 900 wind-monitoring stations all over the country and issued wind potential maps at 50m, 80m, 100m, 120m and 150m above ground level.
The recent assessment indicates a gross wind power potential of 695.50 at 120 meter and 1163.9 GW at 150 meter above ground level, according to the ministry of new and renewable energy’s website.
The ministry has further noted that there are a total of eight windy states including Andhra Pradesh, Gujarat, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, Tamil Nadu, and Telangana with a total wind potential of 676.5 GW at 120m and 1,136.7 GW at 150m above ground level.
