New Delhi, Jan 15 (KNN) The Confederation of Indian Industry (CII) has called on the government to introduce green hydrogen mandates supported by incentives to drive demand and accelerate India’s clean energy transition.
The industry lobby suggested that sectors heavily reliant on grey hydrogen, such as refining, fertiliser, and natural gas, are well-placed to adopt green hydrogen at scale.
CII noted that the cost gap between green and grey hydrogen remains a major hurdle. “Greening mandates backed by incentives would help overcome this economic barrier, providing certainty to producers and enabling faster cost declines through economies of scale,” it said, reported PTI.
Proposed Measures to Support Adoption
The lobby recommended phased mandates along with cost-offset mechanisms. Suggested measures include allocation of carbon credits for emissions reductions, cross-subsidies in the fertiliser sector through cheaper natural gas blended with green hydrogen, and viability gap funding to reduce costs for consumers and industry.
Public Procurement to Anchor Demand
CII proposed leveraging public infrastructure projects—such as housing, railways, ports, and bridges—to create predictable demand for green hydrogen-based products.
Mandating that 10–15 per cent of materials like steel, cement, and ammonia in public projects come from green hydrogen could lower costs through scale and reduce investment risks for producers.
Industrial Clusters and Export Potential
Developing industrial green hydrogen clusters with shared infrastructure would support smaller users, including MSMEs in ceramics, glass, and chemicals, who face high grey hydrogen costs.
To boost exports, CII suggested bilateral trade agreements with countries like Germany, the Netherlands, Japan, and South Korea, harmonising Indian standards with international norms, simplifying trade documentation, and granting green hydrogen products ‘deemed export’ status for eligibility under export incentives.
Financial Instruments and Investment Support
CII emphasised that attracting private investment in early-stage green hydrogen projects will be crucial. Developing financial instruments to make Indian ventures globally competitive would further accelerate adoption.
(KNN Bureau)
