See Full Document Text
GOVERNMENT OF INDIA
MINISTRY OF NEW AND RENEWABLE ENERGY
RAJYA SABHA
STARRED QUESTION NO. 114
ANSWERED ON 10.02.2026
FINANCIAL INCENTIVES SANCTIONED UNDER THE SIGHT PROGRAMME
*114. SMT. KIRAN CHOUDHRY
Will the Minister of NEW AND RENEWABLE ENERGY be pleased to state:
(a) the quantum and types of financial incentives sanctioned under the Strategic
Interventions for Green Hydrogen Transition (SIGHT) programme;
(b) the amount disbursed so far to project developers and manufacturers;
(c) whether these incentives have led to reduction in the cost of Green Hydrogen
production; and
(d) the benchmarks adopted for monitoring cost competitiveness?
ANSWER
THE MINISTER OF NEW & RENEWABLE ENERGY AND CONSUMER AFFAIRS,
& FOOD AND PUBLIC DISTRIBUTION
(SHRI PRALHAD JOSHI)
(a) to (d) A statement is laid on the Table of the House.
*****STATEMENT
STATEMENT REFERRED TO IN REPLY TO RAJYA SABHA STARRED
QUESTION No. 114 for ANSWER ON 10/02/2026
(a) to (c) 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.
The details regarding the quantum and types of financial incentives under Strategic
Interventions for Green Hydrogen Transition (SIGHT) Programme, are provided below:
i. Inventive scheme for electrolyser manufacturing
• Under this scheme, incentive is provided for a period of 5 years for
electrolyser manufacturing, in terms of Rs./kW corresponding to the
electrolysers manufactured as given below:
Year of Sales Year 1 Year 2 Year 3 Year 4 Year 5
Base Incentive Available (Rs./Kw) 4440 3700 2960 2220 1480
• 3000 MW per annum electrolyser manufacturing capacity has been awarded to
15 companies, at a total financial incentive of Rs. 4440 crores.
ii. Incentive schemes for green hydrogen production
• Under this scheme, incentive is provided for a period of 3 years for green
hydrogen production, in terms of Rs./kg of green hydrogen produced as given
below:
Year of Production Year 1 Year 2 Year 3
Incentive cap (Rs./kg) 50 40 30
• 8,62,000 tonnes per annum of green hydrogen production capacity has been
awarded to 18 companies, at a total financial incentive of Rs. 5294 crores.
• Prices have been discovered by Solar Energy Corporation of India (SECI) for
the production and supply of 7,24,000 Metric Tonnes per Annum (MTPA) of
Green Ammonia (a derivative of Green Hydrogen) to 13 fertilizer units across
India. The total financial incentive for this is Rs. 1534 crores.
• 20,000 tonnes per annum of green hydrogen production and supply capacity
has been awarded for supply to refineries of Indian Oil Corporation Limited,
Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation
Limited, at a total financial incentive of Rs. 240 crores.
In accordance with the scheme guidelines, disbursement of incentives to green hydrogen
project developers and electrolyser manufacturers is linked to commissioning of the awarded
capacities.
These assured incentives improve project bankability, reduce financing costs, and facilitate
long - term offtake arrangements for green hydrogen and its derivatives. The above schemes
also support efficiency improvements by incorporating specific energy consumption as one of
the incentive calculation parameters, leading to lower electricity consumption per unit of
green hydrogen produced. Collectively, these measures progressively reduce the cost of green
hydrogen production.(d) The cost competitiveness of green hydrogen is being monitored through comparison with
prevailing market prices of grey hydrogen currently used by refineries, which is produced
from naphtha or natural gas. The cost of grey hydrogen produced in Indian refineries is in the
range of approximately Rs. 180 – Rs. 240 per kg.
Under the SIGHT Scheme, the discovered Levelized Costs of Hydrogen (LCOH) through
competitive bidding serve as a benchmark for assessing the cost trajectory of green hydrogen.
The discovered prices are Rs. 397 per kg (inclusive of 18% GST) for supply to the refinery of
Indian Oil Corporation Limited and Rs. 387 per kg (inclusive of 18% GST) for supply to the
refineries of Bharat Petroleum Corporation Limited and Hindustan Petroleum Corporation
Limited.
These benchmark prices are used to track the cost reduction trends for green hydrogen in
order to assess the cost competitiveness with conventional grey hydrogen.
*****