MNRE in discussions with the Ministry of Finance on new RE scheme for floating solar and agri photo-voltaic: Santosh Kumar Sarangi, Secretary, MNRE

November 28, 2025

New Delhi, 28 November 2025: Shri Santosh Kumar Sarangi, Secretary, Ministry of New and Renewable Energy, Government of India, while addressing the 98th Annual General Meeting and Annual Convention, provided a governmental perspective on the energy mix and the grid challenge. He acknowledged that MNRE is in regular discussions with the Ministry of Finance on new schemes to support renewable energy expansion, with a particular focus on floating solar and agrivoltaic solutions that can be deployed without requiring large land parcels.

Shri Sarangi asserted that India’s energy demand will increase exponentially, necessitating a proper energy mix that includes RE, nuclear, and coal power to ensure baseload management and capacity addition. He cited the target of 500 GW of RE capacity by 2030 and a projected 1,800 GW by 2047, with solar accounting for the majority, underscoring the vital role of RE.

Shri Sarangi acknowledged that transmission remains a challenge due to the long gestation period of high-voltage lines (4 to 5.5 years) compared to RE projects (1 to 2 years). To address grid lag, he highlighted initiatives such as CERC regulations, splitting NIA, and encouraging distributed RE (e.g., agri-photovoltaics in agriculturally rich states and floating solar in the NER) to reduce land-related issues. He noted that the Green Energy Corridor scheme is adding circuit kilometres to upgrade state evacuation infrastructure.

Addressing tariff sustainability, he explained that the slightly higher rates (around ₹2.50) are a conscious policy decision to encourage domestic manufacturing (DCR requirement) and achieve self-reliance (Atmanirbhar) in line with the target of 1800 GW.

Shri Sarangi expressed great confidence in technological breakthroughs like perovskite solar cells, which have the potential to reduce electricity costs to ₹1.00 per unit if stability for 25 years can be established.

On the role of states, Shri Sarangi stressed their key function in allocating land, facilitating evacuation, and accepting Power Purchase Agreements (PPAs), citing the catalytic impact of schemes like PM-KUSUM in helping states reduce discom losses from agricultural feeders and rural households.

Ms Naina Lal Kidwai, Past President, FICCI and Chairman, Rothschild & Co India, while addressing the gathering, focused on the evolution of sustainability from a compliance issue to a business strategy and the need for circular-economy models.

Ms Kidwai affirmed that for listed companies, sustainability has moved “well beyond compliance” and is now an integral business strategy, noting that RE adoption is driven by price competitiveness rather than environmental benefits alone. She emphasised that leading Indian companies are global leaders in sustainability indices, focusing on critical issues beyond power, such as water efficiency in a water-scarce country and responsible community engagement.

Reflecting on sustainability amongst MSMEs, she highlighted the challenges related to initial capital expenditure, suggesting that industrial parks with high sustainability standards could be the solution, as companies are prepared to pay a unit cost for these shared services.

Ms Kidwai advocated for circularity and waste-to-wealth models, citing the example of Holcim using sewage waste, plastic, and tree trimmings for energy in its cement units. She identified the need to sort out the logistics, legal structure, and pricing for municipalities to effectively use plastic waste and sewage for industrial energy, as well as to use construction rubble (30%) as a raw material for cement, replacing mining and limestone.

She stressed that water cannot be ignored, proposing that industry proactively adopt water audits, real-time monitoring, a fixed minimum percentage of treated wastewater reuse, and, potentially, a star rating system to monitor water-use efficiency (ZLD goal by 2030), similar to AC energy ratings.

Mr Vipul Tuli, Chair, FICCI RE CEOs Committee and President & CEO – Renewables West, Sembcorp Industries, in his remarks, analysed the macro challenges, particularly the grid, and proposed the next frontier for investment. He commended India’s “amazing” achievements in sustainability and renewables, noting that the models are commercially savvy, which has driven adoption, but stressed that demand growth is virtually unsatiated due to a large population, rising cooling demand, and data centre growth.

He acknowledged the significant gap between India’s annual RE capacity additions (around 42 GW) and China’s (421 GW), as well as the higher solar tariffs in India (₹ 2.50) compared to the Middle East (₹ 1.00).

Mr Tuli called India’s national grid an outstanding global asset but cautioned that it is “not expanding fast enough.” He urged that grid developers be given “special powers” to accelerate land acquisition and rights-of-way approvals. He identified green fuels and carbon capture (CCUS) as the “next horizon,” noting that global carbon-capture costs are declining—from $30–$40 per ton, with the potential to fall further to $10–$20 per ton.

Mr Tuli also suggested that CCUS, coupled with green chemicals and biomaterials (biomethane, bioethanol), could spawn a large industry, potentially larger than renewables, with 80% to 90% local content, representing a significant opportunity for CapEx and growth.

MNRE in discussions with the Ministry of Finance on new RE scheme for floating solar and agri photo-voltaic: Santosh Kumar Sarangi, Secretary, MNRE

FICCI Media Division

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FICCI's 98th Annual General Meeting and Annual Convention

Nov 28 - Nov 29, 2025 Bharat Mandapam, New Delhi

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