National Green Hydrogen Mission

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Supply Incentives

The Government of India is developing measures similar to the Production Linked Incentives (PLI) scheme to support the manufacturing of electrolysers and green hydrogen in India. Depending upon the markets and technology development, specific incentive schemes and programmes will continue to evolve as the Mission progresses. To ensure quality and performance of equipment, the eligibility criteria for participation in competitive bidding for procurement of Green Hydrogen and its derivatives will specify that the project must utilize equipment approved by Government of India as per specified quality and performance criteria.

  • Strategic Interventions for Green Hydrogen Transition (SIGHT)
  • The SIGHT programme is a major financial measure under the National Green Hydrogen Mission, with an outlay of ₹ 17,490 crores. Under the provision of the central government, the SIGHT programme allocates ₹4,440 Crores for domestic manufacturing of electrolysers (Component-1) and ₹13,050 Crores for green hydrogen production (Component-2). A wide ranging and expansive bouquet of financial incentives and non-financial measures are proposed under the Mission to encourage production of low-cost Green Hydrogen and domestic manufacturing of related equipment and technologies. The National Green Hydrogen Mission (NGHM) establishes an enabling policy framework that includes provisions such as the waiver of interstate transmission charges for renewable energy used in green hydrogen production, facilitation of renewable energy banking and expedited open access and connectivity grants for green hydrogen projects. Additionally, measures to ease business operations, such as simplified procedures, favorable taxation, Special Economic Zone (SEZ) support, and single-window clearances, are facilitated by the central government. The Ministry of Environment, Forest and Climate Change (MoEFCC) has also exempted the Green Hydrogen/Ammonia plants from compulsory requirement of environment clearance. The Interstate Transmission System (ISTS) charges have been completely waived off for 25 years for green hydrogen and green ammonia production units using renewable energy, with eligibility extending to projects commissioned on or before December 31, 2030.

  • Expected outcomes
  • It is expected that the proposed incentives and interventions under the SIGHT programme will significantly reduce the cost of Green Hydrogen, enabling its uptake in emerging sectors and ensure establishment of a domestic manufacturing ecosystem by de-risking first movers and providing viability support for early innovators in the sector till scale and sustainability in the production of Green Hydrogen and its derivatives are achieved.