On 26 Feb 2010, Finance Minister Pranab Mukherjee announced the Union Budget. It signaled the government's intention to transform India's energy mix and meet the twin challenges of energy security and climate change. The budget did contain some important announcements and initiatives - perhaps the most significant of which was the National Clean Energy Fund, most of the money for which will come from a new clean energy cess on coal, pegged at Rs. 50 per tonne.

Key measures include increase in direct funding to the Ministry of New and Renewable Energy, and the allocation of Rs. 200 crore for a Climate Resilient Agriculture Initiative. Tax proposals include breaks on central excise duty for solar PV, electric vehicles and a solar cycle rickshaw, as well as a halving of duty on LED lights from 8 to 4 percent.