Of the total allocation, the government would provide incentives worth ₹17,490 crore for producing electrolyzers and green hydrogen for five years, ₹1,466 crore for pilot projects, ₹400 crore for research and development, and ₹388 crore for other mission components, a government statement said, adding that the ministry of new and renewable energy (MNRE) will formulate the guidelines for implementation of the respective components of the scheme.
“The mission will provide a much-needed boost to encourage the green hydrogen industry. This intervention is even more significant because it comes at a time India has the G20 presidency, clearly showcasing India’s commitment to lead the global energy transition," said Vineet Mittal, chairman of Avaada Group, a green energy developer.
Mint first reported the government’s plans to develop a green hydrogen programme on 1 July 2021. On 24 October 2022, Mint had also reported that the national green hydrogen mission would be allocated around ₹20,000 crore.
The central government expects the mission to attract investments worth ₹8 trillion by 2030 and create about 600,000 jobs.
Minister for new and renewable energy, R.K. Singh tweeted: “The National Green Hydrogen Mission, approved by the cabinet today, will make India a global hub for production, utilisation and export of green hydrogen."
Addressing reporters after the cabinet meeting, information and broadcasting minister Anurag Thakur said that the mission would also result in a reduction in CO2 emission by nearly 50 million tonnes annually and save India ₹1 trillion in its fossil fuel imports.
The mission aims to make India a hub for manufacturing and exporting green hydrogen.
“It will help the country achieve its target of becoming energy independent by 2047 and also achieve the vision of ‘Atmanirbhar Bharat’ (self-reliant India)," Thakur said.
The mission will also support pilot projects in emerging end-use sectors.
In addition, regions suitable for large-scale production and use of hydrogen will be identified and developed as green hydrogen hubs.
The draft national green hydrogen policy was released in February last year.
Rajat Seksaria, chief executive officer of ACME Group, said that the incentive programme makes the green molecule from India competitive.
“This is required for the initial few projects and create green hydrogen hubs, which will allow supply chains to be established and scale of production to increase. Several nations have already come up with green hydrogen subsidies and support programmes," he said.
In another cabinet decision to support India’s energy transition, the government approved the investment for the 382MW Sunni Dam Hydro Electric Project by state-owned SJVN Ltd in Himachal Pradesh with an estimated cost of ₹2,614 crore, which would include the Centre’s budgetary support of ₹13.80 crore.
According to the government, the implementation of the project will generate employment for about 4,000 people during the peak construction phase of the project.
The Union cabinet also approved a ₹2,539.61 crore ‘Broadcasting Infrastructure and Network Development’ central sector scheme to upgrade Prasar Bharati’s broadcasting equipment and transmission capabilities.
All India Radio (AIR) and Doordarshan (DD) will use the scheme for financial support for expenses related to the expansion and upgradation of its broadcasting infrastructure, content development and civil work related to the organization.
The scheme will increase coverage of AIR FM transmitters in the country to 66% by geographical area and 80% by population, up from 59% and 68%, respectively.
The scheme also envisages free distribution of over 800,000 DD Free Dish set-top boxes to people living in remote, tribal, left-wing extremism-affected districts and border areas, Thakur said.
The Union cabinet separately approved the ex-post facto renaming of the Greenfield International Airport Mopa, Goa, as ‘Manohar International Airport – Mopa, Goa’, as a mark of tribute to the former defence minister and Goa chief minister Manohar Parrikar, who died of cancer in 2019.
Saurav Anand contributed to the story
