The Indian government on May 29 eliminated the inter-state transmission fee for offshore wind projects, and this exemption has also been extended to include green ammonia and green hydrogen projects.

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In an interview with CNBC-TV18, Devansh Jain, the executive director of InoxGFL Group, expressed his optimism regarding the long-term transmission fee waiver.

Jain believes that this exemption will have a positive impact on transmission charges and pave the way for a brighter future for the industry. While the immediate effects may not be noticeable, he expects significant developments within the next 24 months.

He said, "It's a very forward-looking move to announce a long-term transmission waiver for offshore wind projects, as well as wind projects, which are used to generate green hydrogen and green ammonia."

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The original equipment manufacturers (OEMs) and power companies will not experience immediate consequences since the announcement of green hydrogen plans has only just begun. It will take approximately 24 months before witnessing a substantial increase in the production and implementation of green hydrogen or green ammonia projects, said Jain.

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"This is going to have a significant advantage in terms of the cost of transmission, which the producers of green hydrogen and green ammonia will have to pay to the government. So, it's a very forward-looking move and it will bring significant clarity to large-scale investors who intend to invest in green hydrogen and ammonia" he added.

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