**Executive Summary**
The Government of India is implementing the National Green Hydrogen Mission (NGHM) to establish India as a global hub for Green Hydrogen production, usage, and export, aiming for a production capacity of 5 Million Metric Tonnes per annum by 2030. Steps are being taken under NGHM for reducing the cost of green hydrogen. Green Hydrogen/Green Ammonia Plants commissioned on or before 31.12.2030 will be granted exemption from the payment of Inter State Transmission System (ISTS) charges for a period of 25 years.
**Key Points / Main Content**
* **Incentive Schemes:**
* Electrolyser Manufacturing: 15 companies awarded with a total manufacturing capacity of 3,000 MW per annum, receiving a total incentive of Rs. 4440 crores.
* Green Hydrogen Production: 18 companies awarded with a cumulative production capacity of 8,62,000 tonnes per annum.
* Green Hydrogen Procurement for Refineries: 2 companies awarded with a total capacity of 20,000 tonnes per annum.
* **Pricing and Supply:**
* Solar Energy Corporation of India has discovered prices for the production and supply of 7,24,000 tonnes per annum of Green Ammonia to 13 fertilizer units across India.
* **Exemptions and Benefits:**
* Green Hydrogen/Green Ammonia Plants commissioned on or before 31.12.2030 are exempt from Inter State Transmission System (ISTS) charges for 25 years.
* Duty benefits under Section 26 of SEZ Act, 2005 are allowed for installation, Operation and Maintenance (O&M) of renewable energy equipment exclusively for captive consumption.
* **Policy Measures:**
* Standard Bidding Guidelines issued for tariff based competitive bidding for Power procurement.
* Exemption granted from ALMM for Solar PV Modules and RLMM for Wind Turbine models within SEZ or EOU.
* 100% Foreign Direct Investment (FDI) permitted under the automatic route.
* Scheme for setting up of Solar Parks and Ultra Mega Solar
* Power projects being implemented to provide land and transmission to RE developers.
* ISTS charges waived for solar and wind power projects commissioned by: 30th June 2025, for Green Hydrogen Projects till December 2030 and for offshore wind projects till December 2032.
* Laying of new transmission lines and creating new sub-station capacity has been funded under the Green Energy Corridor Scheme.
* A transmission plan till 2030 has been prepared for RE trajectory.
**Impact Analysis**
**Stakeholder: Electrolyser Manufacturers**
* **Impact:** Benefit from incentives for manufacturing, increasing production capacity.
* **Action Required:** Leverage the awarded incentive and associated benefits to increase manufacturing capacity.
**Stakeholder: Green Hydrogen Producers**
* **Impact:** Benefit from incentives for production, contributing to increased overall capacity.
* **Action Required:** Leverage the awarded incentives and associated benefits to increase production capacity.
**Stakeholder: Refineries**
* **Impact:** Access to incentives for procuring green hydrogen, supporting the transition to cleaner energy.
* **Action Required:** Take necessary actions to meet decarbonisation targets.
**Stakeholder: Fertilizer Units**
* **Impact:** Guaranteed access to Green Ammonia at discovered prices, promoting sustainable agriculture.
* **Action Required:** Align operations and procurement strategies.
**Stakeholder: Renewable Energy Developers**
* **Impact:** Benefit from policy support.
* **Action Required:** Leverage incentives and support to install renewable energy projects.
**Stakeholder: Investors (Including FDI)**
* **Impact:** 100% FDI and policy support.
* **Action Required:** Take necessary actions to meet decarbonisation targets.
Key Entities Referenced
National Green Hydrogen Mission (NGHM): Government of India initiative aimed at making India a global hub for green hydrogen production, usage, and export.
Ministry of New and Renewable Energy: The ministry responsible for implementing the National Green Hydrogen Mission.
Green Energy Corridor Scheme: Scheme funding the laying of new transmission lines and creation of sub-station capacity for evacuation of renewable power.
SEZ Act, 2005 Section 26: Provision allowing duty benefits to units in Special Economic Zones for installation and maintenance of renewable energy equipment for captive consumption.
Solar Energy Corporation of India: Entity involved in discovering prices for the production and supply of Green Ammonia.
Ministry of New and Renewable Energy
Government Undertaking Measures to Optimise
Energy Mix and Reduce Costs for Green
Hydrogen Production
Posted On: 03 FEB 2026 1:30PM by PIB Delhi
The Government of India is implementing the National Green Hydrogen Mission (NGHM), with an
objective to make India a global hub of production, usage and export of Green Hydrogen and its
derivatives.
India’s Green Hydrogen production capacity is likely to reach 5 Million Metric Tonnes per annum by
2030.
Significant steps have been taken under NGHM for reducing the cost of green hydrogen, details of which
are provided below:
i. Under the incentive scheme for Electrolyser Manufacturing, 15 companies have been awarded a
total manufacturing capacity of 3,000 MW per annum. The total incentive awarded is Rs. 4440
crores.
ii. Under the incentive scheme for Green Hydrogen production, 18 companies have been awarded a
cumulative production capacity of 8,62,000 tonnes per annum.
iii. Under the incentive scheme for procurement of Green Hydrogen for refineries, 2 companies have
been awarded a total capacity of 20,000 tonnes per annum.
iv. Prices have been discovered by Solar Energy Corporation of India for the production and supply of
7,24,000 tonnes per annum of Green Ammonia (a derivative of Green Hydrogen) to 13 fertilizer
units across India.
Other steps taken to facilitate reduction in green hydrogen cost, are as follows:
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. Duty benefits under Section 26 of SEZ Act, 2005 have been allowed to the units for installation as
well as Operation and Maintenance (O&M) of renewable energy equipment exclusively for captive
consumption of the unit.
The above incentives ensure stable and predictable demand for green hydrogen by securing long - term
offtake agreements and integration of green hydrogen for industrial decarbonisation.
India is optimising its energy mix for green hydrogen production by rapidly expanding low - cost
renewable energy capacity, supported by competitive tariff - based bidding, large - scale solar and wind
deployment, and enabling policy frameworks. To support this objective, the following policy measures
have been undertaken:Standard Bidding Guidelines for tariff based competitive bidding process for procurement of Power from
Grid Connected Solar, Wind, Wind-Solar Hybrid and Firm & Dispatchable Renewable Energy (FDRE)
projects have been issued.
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.
Foreign Direct Investment (FDI) has been permitted up to 100 percent under the automatic route.
Scheme for setting up of Solar Parks and Ultra Mega Solar
Power projects is being implemented to provide land and transmission to RE developers for installation of
RE projects at large scale.
Inter State Transmission System (ISTS) charges were waived for inter-state sale of solar and wind power
for projects commissioned by 30th June 2025, for Green Hydrogen Projects till December 2030 and for
offshore wind projects till December 2032.
Laying of new transmission lines and creating new sub-station capacity has been funded under the Green
Energy Corridor Scheme for evacuation of renewable power.
To augment transmission infrastructure needed for steep RE trajectory, transmission plan has been
prepared till 2030.
This information was submitted by Union Minister of State for New and Renewable Energy Shri Shripad
Yesso Naik in a written reply in Rajya Sabha.
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Navin Sreejith
(Release ID: 2222471) Visitor Counter : 301
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