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Union Cabinet Approves Rs 17,490 Crore Incentive Plan For National Green Hydrogen Mission

The mission aims to promote development of green hydrogen production capacity of at least 5 MMT per annum, apart from an associated renewable energy capacity addition of about 125 GW in the country by 2030

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Union minister Anurag Thakur briefed the reporters about the Cabinet nod for National Green Hydrogen Mission

The Union Cabinet on Wednesday approved the National Green Hydrogen Mission with an outlay of Rs 19,744 crore. This approval aims at making India a global hub for manufacturing of this clean source of energy.

Briefing the reporters about the cabinet decisions, the Union Minister Anurag Thakur said, “The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved National Green Hydrogen Mission. The initial outlay for the mission will be Rs 19,744 crore, including an outlay of Rs 17,490 crore for the SIGHT programme, Rs 1,466 crore for pilot projects, Rs 400 crore for R&D, and Rs 388 crore towards other mission components.”

Giving details about the mission, Thakur said that the Ministry of New and Renewable Energy (MNRE) will formulate the scheme guidelines for implementation. “The mission seeks to promote development of green hydrogen production capacity of at least 5 MMT (Million Metric Tonnes) per annum with an associated renewable energy capacity addition of about 125 GW in the country by 2030. It envisages an investment of over Rs 8 lakh crore and creation of over 6 lakh jobs by 2030,” he mentioned. He added that it will also result in cumulative reduction in fossil fuel imports of over Rs 1 lakh crore and abatement of nearly 50 MMT of annual greenhouse gas emissions by 2030.

According to an official statement by the centre, the Mission will have wide ranging benefits, creation of export opportunities for green hydrogen and its derivatives; decarbonisation of industrial, mobility and energy sectors; reduction in dependence on imported fossil fuels and feedstock; development of indigenous manufacturing capabilities; creation of employment opportunities; and development of cutting-edge technologies.

The Mission will facilitate demand creation, production, utilisation and export of green hydrogen. Under the Strategic Interventions for Green Hydrogen Transition Programme (SIGHT), two distinct financial incentive mechanisms, targeting domestic manufacturing of electrolysers and production of green hydrogen will be provided under the Mission.

The Union Minister further added that the Mission will also support pilot projects in emerging end-use sectors and production pathways. Regions capable of supporting large scale production and/or utilisation of hydrogen will be identified and developed as Green Hydrogen Hubs.

An enabling policy framework will be developed to support establishment of the green hydrogen ecosystem. Apart from this, a public-private partnership framework for R&D (Strategic Hydrogen Innovation Partnership - SHIP) will be facilitated under the Mission.

Thakur added that while the Ministry of New and Renewable Energy will be responsible for overall coordination and implementation of the Mission, all concerned ministries, departments, agencies and institutions of the central and state governments will undertake focussed and coordinated steps to ensure successful achievement of the Mission objectives.