As India gains momentum in its transition to green energy, it has to mindful of not relying on imports for the same. "The biggest challenge that I see in the renewable space in India, is a lack of indigenously grown technology," said Vetri Subramaniam, Chief Investment Officer, UTI AMC.

He said companies are trying to make acquisitions, trying to figure out how to jockey and position for it, but they are on the backfoot as the country does not have the technology at the moment.

He said the government does have a whole raft of schemes that it is trying to support via PLI, other mechanisms to build the renewable energy ecosystem here. "And it is critical for India to pull off and be part of this energy transformation that is likely to happen from carbon to renewable, we need to make sure that we are at the forefront of that, and we do not create a new import dependency like we had during the carbon era," he said.

Earlier this month, Secretary of the Ministry of New and Renewable Energy (MNRE) Bhupinder Singh Bhallasaid there was no proposal to to cut import duty on solar Photovoltaic (PV) modules till enough domestic capacities were built.

While he stated that the need for imports will naturally reduce once sufficient local production is achieved, he added that the question of reducing import duties may arise only after solar PV modules made in India become efficient and competitive enough to withstand their global competition.

In January this year, Union minister for petroleum and natural gas Hardeep Singh Puri had said India, which is the third largest energy consumer in the world, is increasing its domestic oil as well as gas exploration, switching to alternate sources, diversifying its import basket and using green fuel as a pathway to transitioning to green energy and security.

A few months later, he highlighted the requirement for domestic production of biofuels, saying it would play a key role in reducing the import on fossil fuel, and then ultimately help achieve the net zero emission target. "Government of India has set a target to increase the share of gas in the energy mix up to 15% in 2030 to make India a gas-based economy. Presently we are importing around 50% of our requirement of Natural gas. Speedy expansion of CBG will help in meeting our additional requirement from domestic resources," Puri had said, according to a ministry statement.

India is targetting net zero emissions by 2070. In this year's Union Budget, Finance Minister Nirmala Sitharaman announced Rs 35,000 crore for priority capital investment towards energy transition and net zero objectives and energy security by the ministry of petroleum and natural gas.

A month prior to the Budget, the Union cabinet had even approved an initial outlay of Rs 19,744 crore for the National Hydrogen Mission. Union Minister Anurag Thakur had said that incentives worth over Rs 17,000 crore would be allotted for electrolyser and green hydrogen manufacturing in the country.

Earlier this year, experts CNBC-TV18 spoke to had stressed that in addition to increasing the production and manufacturing (of green fuel) it was also important to increase the demand. "There has to be a supply-side push and a demand-side pull, also driven by an ambition set out by the government and fulfilled by the private sector," Arunabha Ghosh, CEO of the Council on Energy, Environment and Water (CEEW), had said.

(Edited by : Pradeep John)