New Delhi: The Union Budget for 2024-25 has provided for a Budgetary allocation of INR 600 crore for the National Green Hydrogen Mission, a whopping 102% increase over the previous INR 297 crore provided in the Expenditure Budget document for 2023-24.
It is a 500% increase compared to the Revised Budget estimate of INR 100 crore in 2024-25 Expenditure Budget document.
“The allocation for the Green Hydrogen Mission has been increased… this should provide impetus to the development of the green hydrogen ecosystem in the country,” said Prashant Vasisht, Senior Vice President and Co-Head, Corporate Ratings, ICRA.
The Mission was launched with an initial outlay of INR 19,744 crore, including an outlay of INR 17,490 crore for the SIGHT programme, INR 1,466 crore for pilot projects, INR 400 crore for R&D, and INR 388 crore towards other Mission components. It aims to make India a global hub for manufacturing of this clean source of energy.
MNRE will formulate scheme guidelines for implementation of the respective components.
In the initial stage, two distinct financial incentive mechanisms have been proposed with an outlay of INR 17,490 crore up to 2029-30 – incentive for manufacturing of electrolysers, incentive for production of green hydrogen.
The mission seeks to promote development of green hydrogen production capacity of at least five 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 INR 8 lakh crore and creation of over 6 lakh jobs by 2030.
The Mission will identify and set up at least two green hydrogen hubs in the initial phase. Outlay of INR 400 crore up to 2025-26 for hubs and other projects.
