"EXPECT BUDGET TO PROVIDE EXPORT INCENTIVES FOR GREEN HYDROGEN AND AMMONIA"

Inaconversation with BW Businessworld, VINEET MITTAL, Founder and Chairman of Avaada Group, shares his expectations for the renewable energy sector from the upcoming budget, policy initiatives in the year gone by that gave a fillip to the industry and the potential of India becoming an electrolyser hub By Arjun Yadav

Give us a sense of your outlook for the energy sector in 2022. Given the commodity price escalation, how have the developments panned out in the sector? 

2022 was a very challenging year for the industry. We started with the Covid-19 challenge on the supply side, where all the projects awarded last year had to be commissioned this year, having multiple challenges in terms of the huge commodity price cycle. Cost escalation and enormous challenges around supply chain disruption from China and big companies not being able to honour the contract because of the escalation in copper and steel prices and, on top of that, coal-related changes made 2022 a perfect storm for the industry.

There is also a reality that has sunk in the market regarding bidding for projects. Hopefully, in the future, suppliers will be competitive and, at the same time, prudent in their bidding strategy and execution of the project. From my perspective, it was a great learning year, despite all the challenges. We commissioned almost two gigawatts of projects in the last 12 to 18 months and took contract execution with utmost responsibility by delivering on commitments.

Which sector-specific policy initiatives, from the government side, do you think were ground-breaking and have the potential to shape the year ahead for the sector?