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National Green Hydrogen Mission Advances as Government Outlines Measures to Lower Production Costs

The Ministry of New and Renewable Energy (MNRE) is actively implementing the National Green Hydrogen Mission (NGHM) with the aim of positioning India as a global centre for the production, consumption, and export of green hydrogen and its derivatives.

Under the Mission, India’s green hydrogen production capacity is projected to reach 5 million metric tonnes per annum by 2030. To achieve this target and enhance cost competitiveness, the government has rolled out multiple incentive-based and policy measures.

As part of the Electrolyser Manufacturing Incentive Scheme, 15 companies have been selected, collectively awarded a manufacturing capacity of 3,000 MW per year, supported by incentives amounting to Rs4,440 crore. Additionally, under the Green Hydrogen Production Incentive Scheme, 18 companies have secured a cumulative production capacity of 8.62 lakh tonnes per annum.

To encourage adoption in the refining sector, two companies have been awarded contracts under the green hydrogen procurement scheme for refineries, covering a combined capacity of 20,000 tonnes per annum.

Beyond incentive programmes, several enabling measures have been introduced to further reduce costs. Green hydrogen and green ammonia projects commissioned on or before December 31, 2030, and powered entirely by renewable energy, are eligible for a 25-year exemption from Inter-State Transmission System (ISTS) charges, starting from the project’s commissioning date.

In addition, units operating within Special Economic Zones (SEZs) are being extended duty benefits under Section 26 of the SEZ Act, 2005, covering the installation and operation & maintenance of renewable energy systems used exclusively for captive consumption.

Complementing these efforts, MNRE is also supporting innovation through a research and development initiative titled “Scale-up of Perovskite Tandem Solar Cells (Phase-I)”, with a total project outlay of Rs83.19 crore, aimed at scaling up and indigenising advanced solar cell technologies.

The details were shared by Union Minister of State for New and Renewable Energy, Shri Shripad Yesso Naik, in a written response submitted in the Rajya Sabha.