Cabinet Approves Rs 17,490-Crore Incentive Plan For National Green Hydrogen Mission

The mission seeks to promote development of green hydrogen production capacity of at least 5 MMT per annum with an associated renewable energy capacity addition of about 125 GW in the country by 2030

The initial outlay for the mission will be Rs 19,744 crore, including an outlay of Rs 17,490 crore for SIGHT programme, Rs 1,466 crore for pilot projects, Rs 400 crore for R&D, and Rs 388 crore for other components, said Union Minister Anurag Thakur.

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The Union Cabinet on Wednesday approved the National Green Hydrogen Mission with an outlay of Rs 19,744 crore with an aim to make India a global hub for manufacturing of this clean source of energy. "The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved National Green Hydrogen Mission," Union Minister Anurag Thakur, said while briefing reporters about the Cabinet decisions.

#Cabinet approves National Green Hydrogen Mission

Mission aims to make India a Global Hub for production, utilization and export of Green Hydrogen and its derivatives#CabinetDecisions pic.twitter.com/opw8xDULT8

— Satyendra Prakash (@DG_PIB) January 4, 2023

The initial outlay for the mission will be Rs 19,744 crore, including an outlay of Rs 17,490 crore for the SIGHT programme, Rs 1,466 crore for pilot projects, Rs 400 crore for R&D, and Rs 388 crore towards other mission components.

The Ministry of New and Renewable Energy (MNRE) will formulate the scheme guidelines for implementation. The mission seeks to promote development of green hydrogen production capacity of at least 5 MMT (Million Metric Tonnes) per annum with an associated renewable energy capacity addition of about 125 GW in the country by 2030. It envisages an investment of over Rs 8 lakh crore and creation of over 6 lakh jobs by 2030.

It will also result in cumulative reduction in fossil fuel imports of over Rs 1 lakh crore and abatement of nearly 50 MMT of annual greenhouse gas emissions by 2030.

The Mission will have wide ranging benefits, creation of export opportunities for green hydrogen and its derivatives; decarbonisation of industrial, mobility and energy sectors; reduction in dependence on imported fossil fuels and feedstock; development of indigenous manufacturing capabilities; creation of employment opportunities; and development of cutting-edge technologies, an official statement said.

The Mission will facilitate demand creation, production, utilisation and export of green hydrogen. Under the Strategic Interventions for Green Hydrogen Transition Programme (SIGHT), two distinct financial incentive mechanisms, targeting domestic manufacturing of electrolysers and production of green hydrogen -- will be provided under the Mission.

The Mission will also support pilot projects in emerging end-use sectors and production pathways. Regions capable of supporting large scale production and/or utilisation of hydrogen will be identified and developed as Green Hydrogen Hubs, the minister added.

An enabling policy framework will be developed to support establishment of the green hydrogen ecosystem. A robust standards and regulations framework will be also developed.

Further, a public-private partnership framework for R&D (Strategic Hydrogen Innovation Partnership - SHIP) will be facilitated under the Mission. R&D projects will be goal-oriented, time bound, and suitably scaled up to develop globally competitive technologies. A coordinated skill development programme will also be undertaken.

All concerned ministries, departments, agencies and institutions of the central and state governments will undertake focussed and coordinated steps to ensure successful achievement of the Mission objectives. The Ministry of New and Renewable Energy will be responsible for overall coordination and implementation of the Mission, he stated.