The government has said a mix of manufacturing incentives, production-linked support and regulatory exemptions under the National Green Hydrogen Mission (NGHM) is aimed at lowering the cost of green hydrogen and accelerating capacity build-out.
India’s green hydrogen production capacity is projected to reach 5 MMTPA by 2030, the Ministry of New and Renewable Energy (MNRE) said.
Union Minister of State for New and Renewable Energy Shripad Yesso Naik has said that cost reduction efforts are being driven through targeted incentive schemes across the value chain. Under the electrolyser manufacturing incentive programme, 15 companies have been awarded a combined manufacturing capacity of 3,000 MW per year, with incentives totalling ₹4,440 crore.
Separately, 18 companies have been awarded cumulative green hydrogen production capacity of 8.62 lakh tonnes per annum, while two firms have secured contracts for procurement of 20,000 tonnes per annum of green hydrogen for refineries.
To improve project viability, green hydrogen and green ammonia plants commissioned on or before December 31, 2030 and powered by renewable energy have been granted exemption from Inter State Transmission System (ISTS) charges for 25 years from commissioning. Duty benefits under Section 26 of the SEZ Act, 2005 have also been extended for installation and operation of renewable energy equipment used for captive consumption.
The ministry is additionally supporting a ₹83.19 crore research and development project for scaling up and indigenising perovskite tandem solar cell technology, which officials said would support long-term cost competitiveness of clean hydrogen production.
