New Delhi, Feb 3 (KNN) The Government of India is implementing a series of policy, financial and infrastructure measures under the National Green Hydrogen Mission (NGHM) to position the country as a global hub for the production, use and export of green hydrogen and its derivatives.
India’s green hydrogen production capacity is projected to reach 5 million metric tonnes per annum by 2030.
Union Minister of State for New and Renewable Energy Shripad Yesso Naik informed the Rajya Sabha in a written reply that multiple incentive schemes have been rolled out to reduce production costs and ensure stable demand.
Under the incentive programme for electrolyser manufacturing, 15 companies have been awarded a cumulative manufacturing capacity of 3,000 MW per annum, with incentives amounting to Rs 4,440 crore.
Separately, 18 companies have been allotted a total green hydrogen production capacity of 8.62 lakh tonnes per annum, while two companies have been awarded 20,000 tonnes per annum capacity for procurement of green hydrogen for refineries.
In addition, the Solar Energy Corporation of India (SECI) has discovered prices for the production and supply of 7.24 lakh tonnes per annum of green ammonia to 13 fertiliser units across the country, providing long-term offtake visibility for a key derivative of green hydrogen.
To further lower costs, green hydrogen and green ammonia plants commissioned on or before December 31, 2030, and using renewable energy, have been granted exemption from Inter-State Transmission System (ISTS) charges for 25 years from the date of commissioning.
Duty benefits under the SEZ Act, 2005, have also been extended for the installation and operation of renewable energy equipment used exclusively for captive consumption.
The government is simultaneously optimising the energy mix for green hydrogen production by rapidly expanding low-cost renewable energy capacity.
Measures include the issuance of standard bidding guidelines for tariff-based procurement of solar, wind, hybrid and firm renewable energy projects, exemptions from ALMM and RLMM requirements for renewable energy plants supplying power exclusively to green hydrogen units in SEZs or EOUs, and allowance of up to 100 per cent foreign direct investment under the automatic route.
Additional initiatives include the development of large-scale solar parks and ultra-mega renewable power projects, waiver of ISTS charges for eligible renewable energy and green hydrogen projects up to specified timelines, and expansion of transmission infrastructure under the Green Energy Corridor Scheme.
A comprehensive transmission plan has also been prepared through 2030 to support the anticipated growth in renewable energy capacity.
According to the government, these measures are aimed at enabling industrial decarbonisation, ensuring predictable demand through long-term offtake arrangements, and improving the global competitiveness of India’s green hydrogen ecosystem.
(KNN Bureau)
