Green Hydrogen in India: All You Need to Know About Acts, Incentives & Schemes

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A comprehensive list of policies, incentives, schemes, regulations, and acts connected with Green Hydrogen in India, based on the latest available information:

🇮🇳 Green Hydrogen Framework in India

1. National Missions & Policies

  • National Hydrogen Mission (NHM) – Launched on 15 August 2021 to make India a global hub for hydrogen production and fuel cell technology.
  • National Green Hydrogen Mission (NGHM) – Approved in January 2023 with a financial outlay of ₹19,744 crore. It includes:
    • SIGHT Programme (Strategic Interventions for Green Hydrogen Transition)
    • Pilot Projects in steel, shipping, mobility, and energy storage
    • Green Hydrogen Hubs
    • R&D Roadmap under SHIP (Strategic Hydrogen Innovation Partnership)
    • Skill Development & Public Awareness initiatives

2. Incentive Schemes

  • SIGHT Mode-I: Incentives for green hydrogen production (₹50/kg in Year 1, ₹40/kg in Year 2, ₹30/kg in Year 3)
  • SIGHT Mode-II: Incentives for electrolyser manufacturing (₹4,440/kW in Year 1, tapering to ₹1,480/kW in Year 5)
  • Viability Gap Funding (VGF): For pilot projects in hard-to-abate sectors like steel and shipping
  • Customs & GST Exemptions: On electrolyser imports and renewable energy components
  • Carbon Credits & Renewable Energy Certificates (RECs): For green hydrogen producers

3. Regulatory Framework

  • Green Hydrogen Policy (2022) – Offers:
    • Waiver of inter-state transmission charges for 25 years
    • Priority access to power markets
    • Banking of surplus renewable energy for 30 days
    • Single-window clearance system
  • Hydrogen Purchase Obligation (HPO) – Proposed mandate for industries to procure a share of hydrogen from green sources
  • Certification Framework – MNRE is developing standards to certify hydrogen as “green” based on emissions and source

4. Legal Acts & Statutes

  • Energy Conservation Act, 2001 (Amended 2022) – Introduced carbon credit trading and mandates renewable energy share in consumption
  • Electricity Act, 2003 – Enables open access, concessional wheeling, and RECs for green hydrogen projects
  • Environmental Protection Act, 1986 – Regulates emissions and hazardous substances, indirectly applicable to hydrogen certification
  • Customs Act, 1962 & GST Act, 2017 – Governs tax exemptions for hydrogen-related imports
  • FDI Policy – Allows 100% FDI in green hydrogen under automatic route

5. Standards & Approvals

  • 87 Indian Standards already adopted; 59 under development
  • Developed by:
    • Bureau of Indian Standards (BIS)
    • Oil Industry Safety Directorate (OISD)
    • Petroleum and Explosives Safety Organization (PESO)
    • Petroleum and Natural Gas Regulatory Board (PNGRB)
    • Ministry of Road Transport and Highways (MoRTH)
  • Testing Infrastructure: Needs strengthening to meet NGHM goals
References:

National Green Hydrogen Mission (NGHM)

Green Hydrogen Policy (2022)

Scheme Guidelines

Energy Conservation Act (Amendment 2022)

Hydrogen Purchase Obligation (HPO)


Location: India

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