India is aiming to become a global hub for green hydrogen production, supported by the launch of the National Green Hydrogen Mission (NGHM) in January 2023. With a budget of ₹19,744 crore, the mission targets the production of 5 million metric tonnes of green hydrogen annually by 2030. To achieve this, developers and investors must navigate a complex regulatory landscape involving central, state, and local authorities mentioned in the white paper by Cleantech Industry Resources
The regulatory process is layered and involves over 73 distinct approvals depending on the location and type of green hydrogen project. These approvals are split into two main stages: pre-establishment and pre-operation. Some of the central government approvals include registrations with the Ministry of Corporate Affairs, the Department for Promotion of Industry and Internal Trade, and the Central Pollution Control Board. Clearances are also needed from bodies such as the Central Electricity Regulatory Commission (CERC), the Directorate General of Foreign Trade (DGFT), and the Ministry of Ports, Shipping, and Waterways.
State-level approvals are equally extensive. These include land and building permits, factory licenses, electrical equipment energization, and environmental impact assessments. Local authorities handle land use planning, building construction permits, and water connection permissions. These multi-tiered requirements often cause project delays, with 30% of such delays attributed to regulatory bottlenecks.
To streamline the process, the government introduced the National Single Window System (NSWS), a digital platform designed to facilitate end-to-end clearances. Through NSWS, applicants can register, identify approvals using a Know Your Approvals (KYA) tool, apply using digital signatures, track the application, and make necessary payments. However, as of July 2025, only Gujarat, Kerala, and Rajasthan have integrated their systems with NSWS, so manual follow-up is still required in other states.
Projects in India may also face early-stage risks due to the variation in regulations across different states. Therefore, developers are advised to begin land and water due diligence early and engage directly with non-integrated departments. Strategies such as securing long-term offtake agreements, green financing, and forming dedicated regulatory liaison teams are considered essential for navigating this landscape.
While no specific Earnest Money Deposit (EMD) or Performance Bank Guarantee (PBG) amounts were mentioned in this white paper, it outlines the importance of understanding regulatory frameworks early in the project lifecycle. Developers who are well-prepared and informed are more likely to avoid delays and cost overruns.
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