Lok Sabha Question No. 3169 (UNSTARRED), answered on 2025-03-19
Subject: Challenges Faced by Green Hydrogen Projects
Ministry: NEW AND RENEWABLE ENERGY
Asked by: Dr. Mallu Ravi

## GOVERNMENT OF INDIA MINISTRY OF NEW AND RENEWABLE ENERGY

## LOK SABHA UNSTARRED QUESTION NO. 3169

ANSWERED ON 19/03/2025

## CHALLENGES FACED BY GREEN HYDROGEN PROJECTS

## 3169. DR. MALLU RAVI

Will the Minister of NEW AND RENEWABLE ENERGY be pleased to state:

- (a) whether the Government acknowledges the key challenges faced by green hydrogen projects including rising electrolyser costs, lack of offtake agreements and insufficient supportive policies; and
- (b) if so, the details thereof and the steps being taken to mitigate these issues and ensure the successful implementation of green hydrogen projects in India?

## ANSWER

## THE MINISTER OF  STATE  FOR NEW & RENEWABLE ENERGY AND POWER

## (SHRI SHRIPAD YESSO NAIK)

(a)&(b) The Ministry of New and Renewable Energy (MNRE) is implementing the National Green Hydrogen Mission, with an objective to make India a global hub of production, usage and export of Green Hydrogen and its derivatives.

Strategic  Interventions  for  Green  Hydrogen  Transition  (SIGHT) is  a  key  component  of  the Mission,  which  provides  incentives  for  production  of  Green  Hydrogen  and  Electrolyser Manufacturing.

- i. Under the incentive scheme for Green Hydrogen production, a Green Hydrogen production capacity of 4,12,000 tonnes per annum has been allocated.
- ii. Under  the  incentive  scheme  for  Electrolyser  Manufacturing,  an  electrolyser manufacturing capacity of 3,000 MW per annum has been allocated.

In order to facilitate domestic offtake, following steps have been taken:

- i. Scheme Guidelines for Implementation of SIGHT Programme - Component - II: Incentive for Procurement of Green Ammonia Production (under Mode - 2A i.e. demand aggregation for Green Ammonia) have been issued.
- ii. Scheme Guidelines for Implementation of SIGHT Programme - Component - II: Incentive for Procurement of Green Hydrogen Production (under Mode - 2B i.e. demand aggregation for Green Hydrogen) have been issued.
- iii. Scheme Guidelines have also been issued to support Green Hydrogen based pilot projects under the Mission in steel, shipping and road transport sectors.

Other steps taken to ensure successful implementation of Green Hydrogen projects, include the following:

- i. Green Hydrogen/Green Ammonia Plants commissioned on or before 31.12.2030, and which utilize renewable energy for the production of Green Hydrogen or Green Ammonia,  have  been  granted  exemption  from  the  payment  of  Inter  State

Transmission System (ISTS) charges for a period of 25 years, starting from the date of commissioning of the project.

- ii. Standalone  plants  producing  Green  Hydrogen/Green  Ammonia  by  way  of electrolysis of water using Renewable  Energy, have been exempted  from requirement  of  prior  Environmental  Clearance  under  the  provisions  of the Environment Impact Assessment Notification 2006.
- iii. Duty benefits under Section 26 of SEZ Act, 2005 have been allowed to the units for installation as well as O&M of renewable energy equipment exclusively for captive consumption of the unit.
- iv. Exemption  has  been  granted  from  Approved  List  of  Models  &  Manufacturers (ALMM) for  Solar  PV  Modules  and  Revised  List  of  Models  &  Manufacturers (RLMM)  for  Wind  Turbine  models  requirements  for  Renewable  Energy  plants located inside an Special Economic Zone (SEZ) or Export Oriented Unit (EOU) and supplying power exclusively for production plants of Green Hydrogen (or its derivatives), which are located inside an SEZ or set up as an EOU.

The mission objectives are also supported by the following initiatives at state level:

- i. Dedicated  Green  Hydrogen  policies  notified  by  the  states  of  Andhra  Pradesh, Maharashtra, Uttar Pradesh, and West Bengal
- ii. Facilitative provisions under the Renewable Energy or Energy or Industrial policies notified by the states of Himachal Pradesh, Madhya Pradesh, Odisha, Telangana, Rajasthan, Assam, and Chhattisgarh.

*****