India's Push for Green Hydrogen: Strategic Incentives to Drive Clean Fuel Adoption
Key Ideas
  • The Indian government has allocated ₹13,050 crore for the National Green Hydrogen Mission to promote green hydrogen production and adoption.
  • The scheme aims to make green hydrogen cost-competitive, maximize its production, and encourage its use in various sectors.
  • Implementation will be overseen by the Ministry of New and Renewable Energy, requiring adherence to the National Green Hydrogen Standard.
  • Incentives will be provided based on the production of green hydrogen itself or its derivatives like Green Ammonia, following specified equivalence factors.
The Indian government has taken a significant step towards promoting green hydrogen production by sanctioning a ₹13,050 crore scheme under the National Green Hydrogen Mission. This initiative, known as the 'Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme Component II: Incentive Scheme for Green Hydrogen Production (under Mode 1)- Tranche-II,' is aimed at accelerating the development and adoption of clean hydrogen as an alternative fuel source. The Ministry of New and Renewable Energy (MNRE) has issued guidelines for the implementation of the SIGHT Program, signaling the government's commitment to promoting renewable energy. The key objectives of the scheme include maximizing green hydrogen production, making it cost-competitive with traditional fossil fuels, and promoting its widespread use across various sectors. The initiative is set to be implemented from FY 2025-26 to FY 2029-30. To be eligible for incentives, bidders must ensure green hydrogen production aligns with the 'National Green Hydrogen Standard' criteria. Incentives will be provided based on the production of green hydrogen or its derivatives like Green Ammonia. The Solar Energy Corporation of India (SECI) will oversee the scheme's implementation, emphasizing the importance of clean energy transition in India's sustainable development journey.
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