Government approves Rs 19,744 crore National Green Hydrogen Mission; envisages Rs 8 lakh-crore investment

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New Delhi, January 4

The government on Wednesday announced the launching of 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 source of clean energy.

A decision in this regard was taken at a meeting of the Union Cabinet, which was chaired by Prime Minister Narendra Modi, said Union minister Anurag Thakur while briefing the media.

Giving the break-up details of the outlay of Rs 19,744 crore, the minister said incentives worth Rs 17,490 crore will be given for manufacturing of green hydrogen and electrolysers, whereas Rs 1,466 crore will be spent on pilot projects, Rs 400 crore for R and D, and Rs 388 crore towards other mission components.

The Ministry of New and Renewable Energy (MNRE) will be the nodal agency to implement the mission by formulating guidelines for the same, Thakur said.

“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, as it envisages an investment of over Rs 8 lakh crore and creation of over 6 lakh jobs by 2030,” the Minister said, adding that it will also result in cumulative reduction in fossil fuel imports of over Rs 1 lakh crore and reduction of nearly 50 MMT of annual greenhouse gas emissions by 2030.

Highlighting the benefits of the Mission, the government in a statement said, “It would create 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.”

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.