The Government of India is implementing the National Green Hydrogen Mission (NGHM) with the objective of making India a global hub for the production, usage, and export of green hydrogen and its derivatives. India’s green hydrogen production capacity is likely to reach 5 million metric tonnes (MMT) per annum by 2030, according to a statement issued by the Ministry of New and Renewable Energy on March 25, 2026.
Early Progress in Green Hydrogen Capacity
According to official data, approximately 8,000 tonnes per annum of green hydrogen production capacity has been commissioned in the country as of February 2026, marking initial progress toward the long-term goal.
Steady Rise in Budget Allocation and Utilisation
Financial allocations under the mission have seen a steady increase over the past three fiscal years. In FY 2023–24, Rs 100 crore was allocated, of which Rs 0.11 crore was utilized. The allocation rose to Rs 300 crore in FY 2024–25, with utilization reaching Rs 46.26 crore. For FY 2025–26, Rs 300 crore has been earmarked, with Rs 203.75 crore utilized as of March 19, 2026, indicating a significant improvement in fund deployment.
Competitive Bidding Reveals Production Costs
The cost of green hydrogen production, as discovered through competitive bidding, stands at Rs 397 per kg (inclusive of 18 percent GST) for supply to the refinery of Indian Oil Corporation Limited. For refineries operated by Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation Limited, the discovered price is slightly lower at Rs 387 per kg (inclusive of 18 percent GST).
Renewable Energy Drives Majority of Production Cost
The Ministry of New and Renewable Energy cited a report by the World Bank Group titled “Electrolysers for Hydrogen Production” which highlights that renewable energy sources such as solar and wind contribute approximately 50 percent to 70 percent of the total production cost of green hydrogen, estimated at around Rs 235 per kg.
This information was presented in the Rajya Sabha by the Minister of State for New and Renewable Energy, Shripad Yesso Naik, on March 25, 2026.
