The National Hydrogen Mission for India, announced on 75th Independence Day (i.e. 15th August, 2021) by Prime Minister Narendra Modi, has finally seen its first phase incentives announced. The Mission aims to aid the government in meeting its climate targets and making India a green hydrogen hub. The idea is to help in meeting the target of production of 5 million tonnes of Green hydrogen by 2030 and the related development of renewable energy capacity.
Hydrogen and Ammonia are envisaged to be the future fuels to replace fossil fuels. Production of these fuels by using power from renewable energy, termed as green hydrogen and green ammonia, is one of the major requirements towards environmentally sustainable energy security of the nation. Government of India is taking various measures to facilitate the transition from fossil fuel / fossil fuel based feed stocks to green hydrogen / green ammonia. The notification of this policy is one of the major steps in this endeavour.
The policy provides as follows :
While ticking many of the expected boxes, the policy (for now) does not mention any specific benefits on the GST front for electrolyser manufacturers domestically. There is also no mention yet of starting a minimum use criterion for energy intensive industries in the metals , chemicals and other spheres, probably till the time production capacity ramps up.
What is interesting is allowing energy used for green hydrogen production to be counted under RPO obligations for states, which should help at least a few briedge the yawning gap between targets and achievements on this front possibly.
With the overall focus on ease of doing business and waivers (of ISTS charges, for instance), it seems safe to assume that actual catalysing investments from the government in the form os a possible PLI scheme for electrolyser manufacturing, and other such incentives, will follow after more detailed stakeholder discussions.
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