Empowering India's Green Hydrogen Transition Through SIGHT Incentive Scheme
Key Ideas
  • The Union Cabinet in India approved the National Green Hydrogen Mission with a substantial budget allocation, signaling a significant commitment to green hydrogen initiatives.
  • The Ministry of New and Renewable Energy issued Scheme Guidelines for the SIGHT Programme, focusing on incentivizing domestic manufacturing of electrolysers and green hydrogen production.
  • The Scheme allocates a substantial budget, outlines implementing agency responsibilities, sets guiding principles for incentives, and establishes penalties for non-compliance.
  • A stringent eligibility criteria under the Scheme ensures financial stability and manufacturing capability standards for bidders, promoting competitive and reliable participation.
In January 2023, the Union Cabinet of India approved the National Green Hydrogen Mission, demonstrating a strong commitment to green hydrogen initiatives with an initial budget allocation of INR 19,744 crore. The Ministry of New and Renewable Energy subsequently released Scheme Guidelines for the Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme, specifically focusing on incentivizing domestic manufacturing of electrolysers and the production of green hydrogen. The Scheme, with a total outlay of INR 13,050 crore, will be overseen by the Ministry of New and Renewable Energy through the Solar Energy Corporation of India Limited (SECI). SECI's responsibilities include administrative support, application evaluation, and verification of incentive claims. The Scheme offers financial incentives per kilogram of green hydrogen production for a period of three years, with a cap on the incentive amount each year. To ensure compliance and performance, penalties are outlined for non-compliance with tender terms, including forfeiture of deposits and guarantees. A Scheme Monitoring Committee will oversee the implementation and performance of the electrolysers manufacturing capacities. The implementation methodology involves bidding for manufacturing electrolysers, with stringent criteria for financial stability and manufacturing capabilities. Bidders must meet specific net worth requirements and demonstrate local value addition annually. Overall, the Scheme aims to boost green hydrogen production, enhance cost-competitiveness, and promote the large-scale usage of green hydrogen and its derivatives.
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