India Notifies Scheme For Boosting Production Of Green Ammonia

President of India Droupadi Murmu sanctioned the scheme for procurement of Green Ammonia under Mode-2A of the Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme under the National Green Hydrogen Mission (NGHM).

The aim of the scheme is to maximize the production of Green Ammonia in India, enhance cost-competitiveness of Green Ammonia vis-a-vis fossil-based alternatives and encourage large scale utilisation of Green Ammonia. Ministry of New and Renewable Energy (MNRE) will implement the scheme through Solar Energy Corporation of India Limited (SECI) as the Implementing Agency. The expenditure on this scheme will be met from the budget provisions made under the National Green Hydrogen Mission Head.

Under the scheme, a direct incentive in terms of Rs/kg of Green Ammonia produced and supplied will be provided for a period of 3 years from the date of commencement of Green Ammonia production and supply. Beneficiaries under the scheme will be selected through a competitive selection process. The incentive will be Rs 8.82/kg of Green Ammonia in the first year of production and supply, Rs 7.06/kg during the second year of production and supply, and Rs 5.30/kg during the third year of production and supply.

Further, to qualify for incentives under the scheme, the bidder will have to ensure that the Green Hydrogen utilized in the production and supply of Green Ammonia aligns with the detailed criteria outlined in the ‘National Green Hydrogen Standard’ notified by MNRE.

A Scheme Monitoring Committee (SMC) under the co-chairmanship of Secretary, Department of Fertilizers and Secretary, MNRE with Mission Director of National Green Hydrogen Mission (NGHM) as one of its members and other experts might periodically review the status of implementation and performance of Green Ammonia production and supply capacities set up under the scheme.

The Union Cabinet has approved the National Green Hydrogen Mission with an outlay of Rs 19,744 crore up to FY 2029-30 under which the Strategic Interventions for Green Hydrogen Transition (SIGHT) programme is a major financial measure with an outlay of Rs 17,490 crore. The programme proposes two distinct financial incentive mechanisms to support the domestic manufacturing of electrolysers and the production of Green Hydrogen. These incentives are aimed at enabling rapid scale-up, technology development and cost reduction.