The government has set a target of establishing 5 million metric tonnes per annum of green hydrogen production capacity in the country by 2030 under the National Green Hydrogen Mission (NGHM), Union Minister of State for New and Renewable Energy and Power Shripad Yesso Naik informed the Rajya Sabha in a written reply.
Responding to an unstarred question from Shri Neeraj Dangi, the Minister said the NGHM aims to make India a global hub for the production, usage and export of green hydrogen and its derivatives. As progress towards the target, 7,56,100 metric tonnes per annum of green hydrogen production capacity has been awarded to 16 companies, he said.
Green Ammonia Sale and Purchase Agreements have also been signed for the production and supply of 6,70,000 metric tonnes per annum of Green Ammonia, a derivative of green hydrogen, to 11 fertiliser units across the country, according to the reply. Separately, 30,000 tonnes per annum of green hydrogen production and supply capacity has been awarded for the refineries of Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL), Hindustan Petroleum Corporation Limited (HPCL) and Numaligarh Refinery Limited (NRL).
On measures to reduce production costs, the Minister said green hydrogen and green ammonia plants commissioned on or before December 31, 2030 and using renewable energy have been exempted from Inter State Transmission System (ISTS) charges for 25 years from the date of commissioning. Duty benefits under Section 26 of the SEZ Act, 2005 have also been extended for installation and operation of renewable energy equipment used for captive consumption, while renewable energy plants located inside a Special Economic Zone (SEZ) or Export Oriented Unit (EOU) and supplying power exclusively to green hydrogen production units have been exempted from Approved List of Models and Manufacturers (ALMM) and Revised List of Models and Manufacturers (RLMM) requirements, the reply stated.
On indigenous electrolyser manufacturing, the Minister said financial incentives are being provided on a declining scale over five years, starting at Rs 4,440 per kilowatt in the first year and reducing to Rs 3,700, Rs 2,960, Rs 2,220 and Rs 1,480 per kilowatt in the following years. Under this scheme, a total electrolyser manufacturing capacity of 3,000 MW per annum has been awarded to 15 companies, the reply added.
