Union Budget 2026-27: Finance Minister Nirmala Sitharaman announces ₹20,000-crore carbon capture, utilisation scheme

Finance Minister Nirmala Sitharaman on Sunday (February 1, 2026) proposed ₹20,000 crore for a carbon capture and utilisation scheme across sectors, including steel and cement.

Presenting the Union Budget for 2026-27, the Union Finance Minister said the government will provide incentives for manufacturing seaplanes in the country as part of efforts to boost tourism.

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Meanwhile, a high-level committee on ‘Banking for Viksit Bharat’ will be set up, Ms. Sitharaman said, announcing various measures to boost the economy.

Among others, the Minister proposed developing seven high-speed corridors between cities as growth connectors, and also have a ship repair ecosystem catering to inland waterways, which will be set up in Varanasi and Patna.

According to the Minister, the Indian banking sector today is characterised by strong balance sheet, historic highs and profitability, improved asset quality and coverage.

Noting that the sector is well placed to futuristically evaluate the measures needed to continue on the path of reform-led growth, Ms. Sitharaman said a high-level committee on Banking for Viksit Bharat will be set up.