Union Budget 2025: EVs, climate-resilient crops, Bhopal gas tragedy in focus as environment ministry budget increased by 9%

Finance Minister Nirmala Sitharaman emphasised the importance of “clean-tech manufacturing for climate-friendly development.

Renewable energy solutions take the front seat in budgetary distributions with Rs 1,500 crore dedicated to solar power projects. Renewable energy solutions take the front seat in budgetary distributions with Rs 1,500 crore dedicated to solar power projects.

The Ministry of Environment, Forests and Climate Change (MoEFCC) has been allocated a budget of Rs 4,056 crore—hiked from the previous year’s revised estimate of Rs. 3,721 crore. 

Finance Minister Nirmala Sitharaman, while presenting the budget, emphasised the importance of “clean-tech manufacturing for climate-friendly development”. In a move towards climate-resilient agriculture, the minister also laid special focus on the national mission for high-yielding seeds for the development of crops adaptable to sensitive climates. Over a hundred similar climate-proof seeds were released in July 2024, Sitharaman remarked. 

Additionally, the Jal Jeevan Mission (JJM)—focused on providing safe and adequate drinking water—has been assigned Rs 67 thousand crores. The programme has been extended till 2028 for “100 per cent coverage”. 

Renewable energy solutions take the front seat in budgetary distributions with Rs 1,500 crore dedicated to solar power (grid) projects. The Kisan Urja Suraksha Evam Utthaan Mahabhiyan (KUSUM) scheme is another programme allotted for farmers’ welfare. 

Recently launched Mission Mausam saw a hike with Rs 1,329 crore allocated in FY 25-26 compared to Rs 671 crore in FY 23-24. The mission aims at improving the country’s weather forecasting and management, along with building a ‘climate-smart’ India. 

Allocation estimates for PM E-bus Sewa and PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme shot up as compared to last year’s revised estimate. PM E-DRIVE aims to incentivise over 14 thousand e-buses across nine major cities with a population exceeding 4 million. 

To further environmental governance, the establishment of central environmental bureaus—such as the National Green Tribunal, Indira Gandhi National Forest Academy, Botanical Survey of India and regional offices—will see a capital expenditure of Rs. 136 crore.

Custom charges on waste and scrap of critical minerals such as cobalt and tungsten, and lithium-ion batteries have been eliminated. 

A total of Rs 126.09 crore was spent in FY 2023-24 for remediation and waste disposal works related to the Bhopal Gas leak disaster. However, for FY 2025-26, the government has proposed a provision of Rs 20.85 crore for “ex-gratia payment” to the victims and for salary to Bhopal Welfare Commission staff.

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