The Union Cabinet on Wednesday approved the national green hydrogen mission with an initial outlay of ₹19,744 crore, which will focus on incentivising the domestic production of electrolysers and green hydrogen.
The mission aims to make India a global hub for production, utilisation and export of green hydrogen and its derivatives, said Anurag Thakur, Minister of Information & Broadcasting, at a media briefing.
India’s Green Hydrogen Mission
On PLI lines
Two separate financial incentive mechanisms — for domestic manufacturing of electrolysers and for production of green hydrogen — will be offered as part of the Strategic Interventions for Green Hydrogen Transition (SIGHT) programme, which has been allocated ₹17,490 crore under the mission.
“The government is considering inviting the industry to bid for participating in the scheme instead of allowing participation on first-come-first-serve basis. Now that the funds have been approved, the details can be finalised. The guidelines for applicants will be worked out soon,” said an official.
The Ministry of New and Renewable Energy (MNRE), which is the nodal Ministry for implementing the scheme, will also decide how the funds allocated under SIGHT are to be divided between the two mechanisms, the official added. “Now that we know the fund allocation for the mission, everything else can be worked out based on that. SIGHT will be on the lines of the Production Linked Incentive scheme with some variations,” he said.
Under the green hydrogen mission, the government has also allocated ₹1,466 crore for pilot projects, ₹400 crore for R&D and ₹388 crore for other mission components. The Ministry will formulate the scheme guidelines for implementation of the respective components, per an MNRE statement.
Green hydrogen has significantly lower carbon emissions than grey hydrogen. By 2030, the mission aims to develop green hydrogen production capacity of at least 5 million tonnes per annum (mtpa) with an associated renewable energy capacity addition of about 125 GW.
It anticipates more than ₹8-lakh crore in investments in the sector by 2030 and create over 6 lakh jobs. This is expected to reduce fossil fuel imports by over ₹1-lakh crore and abatement of nearly 50 mt of annual greenhouse gas emissions.
Avaada Group Chairman Vineet Mittal said the intervention is even more significant because it comes at a time when India has the G20 presidency, clearly showcasing the country’s commitment to lead the global energy transition.
“We hope that government will eventually make it mandatory for select industries to use green hydrogen and solar power to reduce reliance on fossil fuels. We also see this as a prospect for the indigenous production of power components, panels, and parts,” Gautam Mohanka, MD of Gautam Solar, said.