India’s green hydrogen economy is on the brink of a massive ₹10 lakh crore investment wave by 2030, driven by the ambitious National Green Hydrogen Mission (NGHM). According to a recent report by Avener Capital, the country is rapidly scaling up production and electrolyser capacity to meet its decarbonisation goals.
Mission Targets
Under NGHM, India aims to produce five million tons per annum (MTPA) of green hydrogen and establish 20 GW of electrolyser manufacturing capacity by the end of the decade. The Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme, a key pillar of this effort, has an outlay of ₹17,000 crore through FY2030.
The Solar Energy Corporation of India (SECI) has already awarded contracts for over 8.58 lakh MTPA of green hydrogen production. It has also allocated 2.3 GW of electrolyser capacity under the SIGHT scheme, signalling strong progress.
Economic and Environmental Payoffs
The government projects that widespread adoption of green hydrogen will cut fossil fuel imports by ₹1 lakh crore. It could also prevent nearly 50 million metric tons of greenhouse gas emissions. NGHM, launched in January 2023, has a total budget of ₹19,744 crore. It includes incentives to support hydrogen production and electrolyser manufacturing.
Backbone of Industrial Decarbonisation
Green hydrogen will transform hard-to-abate sectors such as fertilisers, refining, and steel. By 2030, the refining and steel industries alone will drive demand to 4.5 MTPA, replacing up to 80% of fossil fuel use in these segments.
Incentives to Accelerate Adoption
To speed up this transition, the government has introduced production-linked incentives (PLI). It has allocated ₹5,258 crore for green hydrogen investment and ₹4,440 crore for electrolysers. As reported by etenergyworld.com, these per-kg awards will be distributed over three years under SIGHT Component II. They link incentives to performance and localisation targets, ensuring both scale and domestic value addition.
