The government's ambitious green hydrogen policy has taken off - the power ministry notified the policy today as part of the government's larger vision of cutting India's dependence on fossil fuels and promote usage of cleaner forms of energy.

As part of phase 1 of the policy, companies setting up facilities to manufacture green hydrogen shall be incentivised in the form of free transmission facilities for 25 years, open access among others.

Watch CNBC-TV18's Sonal Bhutra explain how the policy will work.