India Provides Duty Benefits for Green Hydrogen Production in Special Economic Zones
Key Ideas
  • India exempts solar and wind energy plants in special economic zones from buying specific modules and turbines for green hydrogen production, aiming to reduce costs for producers.
  • The exemption, effective until December 2030, is expected to boost the green hydrogen industry, addressing demands for cheaper equipment with duty benefits.
  • The move aligns with the National Green Hydrogen Mission's target of developing a substantial green hydrogen production capacity and renewable energy addition in India.
India has introduced a new notification exempting solar and wind energy plants located in special economic zones from the requirement to purchase specific modules and turbines for the production of green hydrogen and its derivatives. This exemption, which will be applicable for plants commissioned by December 2030, aims to provide duty benefits to green hydrogen producers, making equipment more affordable. The decision comes after demands from the industry to reduce costs and boost production. The Ministry of New and Renewable Energy issued the notification with prior approval from the Election Commission of India. The move is seen as a positive step to enhance the green hydrogen sector's competitiveness and encourage growth. Previously, India had imposed restrictions on solar module imports due to insufficient domestic capacity. The National Green Hydrogen Mission targets a significant increase in green hydrogen production and renewable energy capacity in the country. Overall, this exemption aligns with the government's efforts to promote renewable energy and drive sustainable development in the green hydrogen sector.
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