Releasing the first part of India’s National Green Hydrogen Policy, the government on Thursday announced some incentives for potential manufacturers, generation companies (gencos) and distribution licensees (discoms) to boost large scale indigenous production of green hydrogen, so as to decarbonise the energy sector and reduce India’s heavy dependence on fossil fuels and crude oil imports. However, industry experts sought more clarity as they claimed as per the latest policy, a lot would still depend on the rates charged by the respective states and union territories (UTs).
The policy was notified by the power ministry on Thursday a year after finance minister Nirmala Sitharaman first revealed about India’s plan to harness green hydrogen in her 2021 budget speech. Later, Prime Minister Narendra Modi announced the National Hydrogen Energy Mission in his Independence Day speech in August. The second part of the policy, which is likely to be about mandating (refineries, fertiliser companies etc) the usage of green hydrogen and green ammonia in a phased manner and also offering PLIs, will require a Cabinet approval and is currently under review with the expenditure finance committee.
