Policy · Climate, Energy & Sustainability

Budget 2026 allocates ₹20,000 Cr for CCUS adoption

By Startup Enthusiast · 3 February 2026

Date: 3 February 2026
Company: Varaha
What it does: Carbon credits and removal startup
Kind: Policy
Amount: ₹20,000 Cr
Founded: 2022
Sector: Climate, Energy & Sustainability

What they do

Varaha helps companies measure and offset carbon emissions through nature-based projects

What happened

Union Budget 2026 announced a ₹20,000 Cr outlay over five years for CCUS adoption scheme

Why it matters

Madhur Jain said the outlay bridges gap between lab prototypes and industrial deployment; Sandiip Bhammer said it turns industrial decarbonisation into a…

The details

Finance minister Nirmala Sitharaman announced the Union Budget 2026 on 1 February 2026.
The budget set aside ₹20,000 Cr over five years for a CCUS adoption scheme.
CCUS stands for carbon capture, utilisation and storage — technologies that trap CO₂ from factories and either store it or turn it into products.
The budget also extended BCD exemptions on capital goods for lithium-ion cell manufacturing and critical mineral processing.
The Budget announced an outlay of INR 20,000 Cr over five years for the CCUS adoption scheme.
Import duty on lithium-ion cells for EV and battery energy storage system makers was removed.
The budget did not give a clear direction on carbon pricing or a domestic carbon credit trading system.
It also lacked specific strategies or incentives for industrial decarbonisation and green financing.

The bigger picture

The Department of Science and Technology launched a CCUS roadmap on 2 December 2025.
It aims for net zero emissions by 2070 through a public-private-partnership model.
The cleantech sector raised $8.8 Bn between 2014 and 2025, growing at a CAGR of 15%.
Sandiip Bhammer said India needs ₹30,000 Cr to ₹40,000 Cr annually via schemes to achieve net zero by 2070.

About the business

Varaha is a carbon credits startup co-founded by Madhur Jain.

The deal

Type: policy

Investors

Sandiip Bhammer (existing) — Managing partner at Green Frontier Capital, a climate-focused venture capital firm.
Vishesh Rajaram (existing) — Founding partner at Speciale Invest, an early-stage venture capital firm investing in deeptech.

Founders

Madhur Jain, co-founder

About Varaha

Product: Carbon dioxide removal projects using biochar, afforestation, regenerative agriculture, and enhanced rock weathering.
Customers: Corporates seeking carbon offsets and carbon removal credits.
How it makes money: Sells carbon removal credits generated from its projects to businesses.
What sets it apart: Focus on high-integrity carbon removal with community co-benefits in the Global South.

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