Rs 20,000 crore carbon capture plan, banking panel announced in Union Budget 2026

Finance Minister Nirmala Sitharaman on Sunday proposed a Rs 20,000 crore carbon capture and utilisation scheme covering multiple sectors, including steel and cement.

Presenting the Union Budget for 2026-27, Sitharaman said the scheme would support efforts to reduce industrial emissions across key manufacturing segments.

The finance minister also announced that the government will provide incentives for manufacturing seaplanes in India as part of measures aimed at boosting tourism.

As part of broader economic reforms, Sitharaman said a high-level committee on ‘Banking for Viksit Bharat’ will be set up. The committee will assess future policy measures needed to sustain reform-led growth in the banking sector.

Highlighting infrastructure development, the minister proposed the creation of seven high-speed corridors between cities to act as growth connectors. She also announced plans to develop a ship repair ecosystem catering to inland waterways, to be set up in Varanasi and Patna.

According to Sitharaman, the Indian banking sector is currently characterised by strong balance sheets, historic highs in profitability, improved asset quality and better coverage.

Noting these improvements, she said the sector is well positioned to evaluate future reforms, adding that the proposed high-level committee on Banking for Viksit Bharat will play a key role in this process.