India is aiming to give incentives worth over Rs 13,000 crore to green hydrogen fuel producers. Sources told CNBC-TV18 that the first tranche of the government's Strategic Interventions for Green Hydrogen Transition (SIGHT) scheme under the National Green Hydrogen Mission is set to begin in this quarter, while the second tranche is likely in the next quarter.

With incentives at Rs 30/kg and worth 10 percent of cost at the least to produce green hydrogen fuel, the government is expecting 3.6 million tonne hydrogen production capacity under the scheme in the next three years. The government plans to support 3,000 MW annual electrolyser capacity for the next five years. Bids for electrolysers are likely to be invited in two tranches, while bids for green hydrogen supply are likely to be invited in three tranches.

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The ministry of new and renewable energy's (MNRE) secretary Bhupinder Singh Bhalla said the incentives slated to be awarded via a competitive bidding process will witness a gradual annual reduction of the amount. Draft concept notes of the proposed scheme have been circulated to industry stakeholders for consultation.

In January, the Union cabinet had approved Rs 19,744 crore as the initial outlay under the National Green Hydrogen Mission. Of which , Rs 17,490 crore were allocated to boost domestic manufacturing under SIGHT.

The Centre has projected that India's green hydrogen production capacity is likely to reach at least 5 MMT per annum, with an associated renewable energy capacity addition of around 125 giga watt. By 2030, the government expects the mission to lead to a fall in carbon dioxide emissions by 50 MMT/annum and has projected the industry will get over Rs 8 lakh crore in investments and generate over 6 lakh jobs.

Also Read: Creation of green hydrogen demand is important to turn ambition into reality, say experts

First Published:Apr 10, 2023 8:58 AM IST