India's Green Hydrogen Mission: Incentivizing Domestic Manufacturing and Production
Key Ideas
  • The National Green Hydrogen Mission in India has been approved with significant funds allocated for various components including the SIGHT Programme.
  • The Scheme Guidelines issued by the Ministry of New and Renewable Energy focus on maximizing green hydrogen production, enhancing cost-competitiveness, and encouraging large-scale utilization.
  • The Scheme sets specific principles including providing direct incentives for green hydrogen production, capped incentives over a 3-year period, and penalties for non-compliance.
  • Implementation methodology includes promoting efficient electrolyser manufacturing through competitive bidding, stringent eligibility criteria, and payment incentives for selected bidders.
In January 2023, India's Union Cabinet approved the National Green Hydrogen Mission with an initial outlay of INR 19,744 crore to support the transition to green hydrogen. The mission includes the Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme, pilot projects, research and development, and other key components. Building on this, the Ministry of New and Renewable Energy issued Scheme Guidelines in July 2024 to implement the SIGHT Programme's Incentive Scheme for Green Hydrogen Production. The Scheme aims to maximize green hydrogen production, enhance cost-competitiveness, and encourage large-scale utilization. It includes a total outlay of INR 13,050 crore and is overseen by MNRE through SECI. The Scheme sets guiding principles for incentives, penalties for non-compliance, and monitoring by a Scheme Monitoring Committee. Implementing agencies will invite bids for manufacturing electrolysers with specific production and incentive requirements. Eligibility criteria are stringent, focusing on financial stability and manufacturing capabilities. The Scheme allocates specific capacities for bidding and outlines payment incentives for selected bidders. Overall, the mission presents a promising opportunity for India to participate in the green hydrogen market with a stable framework for investment and growth.
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