The Union Cabinet on Wednesday approved the National Green Hydrogen Mission with an outlay of Rs 19,744 crore with an aim to make India a global hub for manufacturing of this clean source of energy. “The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved National Green Hydrogen Mission," Union Minister Anurag Thakur said while briefing reporters about the Cabinet decisions.
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.
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.
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.
Gautam Mohanka, managing director of Gautam Solar, said, “We genuinely welcome the Government of India’s much-awaited initial outlay for the National Green Hydrogen Mission. India’s dependency on fossil fuels has been a matter of concern, given that our power consumption demands are likely to soar massively over the next twenty years."
He added that the initial outlay of Rs 19,744 crore will boost the production of green hydrogen in India and will eventually help the industrial, commercial, and residential sectors alike. Given that we currently import more than 80 per cent of India’s national oil requirements, green hydrogen along with solar and wind could be the answer to the future, with this initial outlay being projected to curtail fossil fuel imports of over Rs 1 lakh crore by the year 2050.
“Of these Rs 19,744 crore, Rs 17,490 crore is allocated for the SIGHT programme, which will not only provide a growth opportunity to the domestic manufacturing of electrolysers but also provide a boost to the target of production of 5 million metric tonnes of Green hydrogen by 2030 and making India a green hydrogen hub. This is our international commitment as well for becoming a zero emission nation. Hydrogen and Ammonia will help to further decrease the use of fossil fuels and is wished to be future fuels and will provide clean air to the future generation," Mohanka said.
According to an official statement, 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 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, the minister added.
An enabling policy framework will be developed to support establishment of the green hydrogen ecosystem. A robust standards and regulations framework will be also developed.
Further, a public-private partnership framework for R&D (Strategic Hydrogen Innovation Partnership – SHIP) will be facilitated under the Mission. R&D projects will be goal-oriented, time bound, and suitably scaled up to develop globally competitive technologies. A coordinated skill development programme will also be undertaken.
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.
The Ministry of New and Renewable Energy will be responsible for overall coordination and implementation of the Mission, he stated.
(With Inputs From PTI)
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