TL;DR: The Union Budget 2026 has announced a ₹20,000 crore outlay for Carbon Capture, Utilisation, and Storage (CCUS). This move is set to de-risk high-cost deep-science startups like Varaha, pivoting India toward indigenous carbon-scrubbing technologies.
Is CCUS Finally Moving from the Lab to the Balance Sheet?
Historically, Carbon Capture has been the "rich country's toy"—too expensive for emerging markets. However, with the ₹20,000 crore safety net, the Indian government is effectively subsidizing the "green premium." This allows startups to move from lab-scale prototypes to industrial deployment without fearing bankruptcy.
Will This Create a New Category of 'Deep-Science' Unicorns?
The budget isn't just about the money; it's about the signal. By extending customs duty exemptions on critical minerals and lithium-ion manufacturing, the government is building a "Sovereign Green Stack." Startups working on carbon utilization for fuels and construction are now the hottest ticket for ESG investors.
Vichaarak Perspective
Warm & Analytical: This is a bold, necessary move. Decarbonizing heavy industries like cement and steel is impossible without CCUS. We are finally seeing "Climate Industrial Policy" in action. Snarky/Fun: Budget speeches are usually 90% poetry and 10% tax hikes. Seeing a ₹20,000 crore bet on "industrial vacuum cleaners for the atmosphere" is a pleasant, albeit expensive, surprise.
E-E-A-T+ Analysis
As a long-term observer of India’s fiscal policy and its impact on the tech stack, I see this as the "UPI moment" for Climate Tech. As @harkirat1892 noted in his recent analysis, when the government builds the floor, the startups build the skyscrapers.