India adopts USD-2.4bn green H2 mission with new incentive schemes

Prime Minister Narendra Modi. Source: The Government of India's Press Information Bureau (www.pib.gov.in).

The government of India on Wednesday gave the go-ahead to the National Green Hydrogen Mission with a total budget of INR 197.44 billion (USD 2.39bn/EUR 2.25bn).

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved an outlay of INR 174.9 billion for the Strategic Interventions for Green Hydrogen Transition (SIGHT) programme, INR 14.66 billion for pilot projects, INR 4 billion for research and development (R&D) activities, and INR 3.88 billion towards other Mission components.

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The SIGHT programme, in particular, introduces two distinct financial incentive mechanisms, one that targets the domestic production of electrolysers and another for the production of green hydrogen.

The Mission calls for the development of an enabling policy framework to support the creation of a green hydrogen ecosystem, and for the establishment of a robust Standards and Regulations framework. A public-private partnership framework for R&D will also be facilitated.

One of the major goals of the Mission is to support the development of at least 5 million tonnes of annual green hydrogen production capacity with some 125 GW of renewable energy additions.

The government estimates that total investments as part of the strategy will surpass INR 8 trillion by 2030, with more than 600,000 of newly-created jobs.

The Ministry of New and Renewable Energy (MNRE) will be responsible for the overall coordination and implementation of the Mission, the announcement says.

(INR 10 = USD 0.121/EUR 0.114)

National Green Hydrogen Mission, which the Union Cabinet approved today, is a landmark step towards sustainable development and creating investment opportunities for our youth. https://t.co/PTwbbTqkjL https://t.co/dB79JrpNp3
— Narendra Modi (@narendramodi) January 4, 2023