 "Environmentalists unimpressed by 'pro-corporate' Budget")
Prime Minister Narendra Modi's government, which swept to power in May, said on Thursday that it would invest in very large solar power projects and establish a fund to help farmers adapt to changing weather patterns as a result of climate change.
But some environmental groups said that while they welcomed plans to boost clean energy such as solar and wind, the budget proposals left much to be desired.
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"The steps on renewable energy and energy efficiency are not transformational and the attempt to force fit coal production to clear the irrational power proposals, is a signal that the reality of climate change has far from been recognised by this government," said Vinuta Gopal, head of climate and energy at Greenpeace India.
"It's good that the government is talking of investments in renewable but it is largely focused on large scale renewables and not on decentralised renewable energy for meeting the electrification needs of rural India," Gopal added.
Finance Minister Arun Jaitley told parliament that renewable energy was "a very high priority" and announced around $100 million to build four "ultra mega solar power projects" in Rajasthan, Gujarat, Tamil Nadu, and Jammu and Kashmir.
Jaitley said his coalition government, which is led by the Bharatiya Janata Party, also planned to launch scheme for solar power-driven agricultural water pumping stations, develop solar parks on canal banks and give tax breaks on imported solar components.
The Centre for Science and Environment (CSE), a leading Delhi-based environmental think-tank, agreed with Greenpeace saying the biggest potential for solar energy will come from decentralised and off-grid solutions.
CSE's director Sunita Narain said it was important to invest in smaller power plants that provide clean energy to millions across India's grid and remote villages that have electricity lines but no power. Instead, she said, budget 2014/15 falls back on the "big" solar plants.