India attained freedom in 1947 and celebrated the 77th year of its independence from colonial rule last year. We have come much further since then, as we are on track to become a $4 trillion economy by 2024-25 and will exceed Japan by the beginning of the next fiscal year, to become the fourth largest economy in the world. It all started when India broke free from various notable socio-economic and financial obstacles such as income inequality, uneven regional growth and prevalent joblessness, as also feeble groundwork, inadequate infrastructure, absence of investments and deficiency of skilled workers. But how did it happen? Seen as vital for ensuring economic growth that can be sustained, the Industrial Policy Resolution of the Second Five-Year Plan established the foundation for public sector undertakings (PSUs) to fix India’s fundamental structure. The aim was to boost self-sufficiency and reduce dependence on foreign markets for crucial products and services. Much water has flown under the bridge since then and PSUs like the Indian Renewable Energy Development Agency (IREDA) are leading the way now in promoting and funding renewable energy projects nationwide. PSUs, especially IREDA, took the initiative with the support of Ministry of New and Renewable Energy (MNRE) to explore renewable energy sources, when it was still a nascent field. These early efforts laid the foundation for today’s more extensive and sophisticated projects. Today, PSUs are leading numerous large-scale renewable energy projects. The government has introduced various policies to support PSUs in their green energy efforts. According to a report from the Coal Ministry on World Environment Day 2024, India’s coal and lignite Public Sector Undertakings (PSUs) have successfully converted around 50,000 hectares of barren land near coal mining areas into green forests. These forests can absorb 2.5 million tonnes of carbon dioxide annually, helping India reach its goal of increasing green cover and meeting its carbon absorption targets outlined in the Nationally Determined Contribution (NDC) by 2030. Challenges and opportunities: Despite various successes, PSUs in India face numerous challenges in the renewable energy sector. First of all, securing land for renewable energy plants involves complex processes which can slow down the development of new projects. While there are various government schemes and incentives to promote renewable energy, accessing capital investment funds can be difficult due to bureaucratic red tape. At the same time, PSUs still need to focus immensely on encouraging innovation and adopting cutting-edge technologies to enhance efficiency and reduce costs. Despite these challenges, the renewable energy sector in India offers immense growth opportunities. The government’s ambitious targets for renewable energy capacity, coupled with favourable policies and incentives, create an environment conducive for PSUs to expand their operations. Leveraging these opportunities requires strategic planning and efficient execution.
