Cascading Commitment: Indian States Turbocharge Green Hydrogen Revolution with Incentive-Fueled Initiatives

Following the Indian government’s ambitious plans to promote green hydrogen production and electrolyser manufacturing, several states have embarked on their own initiatives to incentivize the green hydrogen and renewable energy sectors. These state-level policies and incentives are set to complement the national efforts, further bolstering the country’s position in the green hydrogen arena.

India’s National Green Hydrogen Mission (NGHM), launched on January 4th, aims to establish the country as a leading global producer and exporter of green hydrogen, targeting an annual production of 5 million metric tons by 2030. The Ministry of New and Renewable Energy (MNRE) introduced the NGHM with an initial budget allocation of Rs 19,744 crore, with substantial portions allocated to incentivize green hydrogen production and electrolyser manufacturing.

State Initiatives and Incentives

Several states have followed suit by introducing their green hydrogen policies and incentives, aligning with the national mission’s objectives. These incentives are diverse and encompass subsidies, land allotments, tax exemptions, and more. Importantly, these state-level initiatives are in addition to the schemes provided by the central government, creating an advantageous scenario for green energy producers.

Andhra Pradesh:

The state has set targets for green hydrogen and green ammonia production and is promoting related manufacturing facilities. Incentives include subsidized land leases, exemptions from land-use conversion charges and stamp duty, and waivers on electricity duty and cross-subsidy surcharges.

Maharashtra:

The state has approved its green hydrogen policy, earmarking Rs 8,562 crore for subsidies and benefits to green energy producers and electrolyser manufacturers. The policy includes exemptions on surcharges, transmission charges, and electricity duty.

Gujarat:

Gujarat plans to prioritize green hydrogen manufacturing and has introduced land allotment policies that offer favorable terms to companies investing in green hydrogen projects. Incentives may include interest subsidies, SGST reimbursement, and electricity duty exemptions.

Uttar Pradesh:

The state aims to develop significant green hydrogen production capacity by 2028 and is drafting its Green Hydrogen Policy, 2023. Proposed incentives encompass exemptions from stamp duty, electricity duty, tax reimbursements, and more.

Rajasthan:

The state has announced its Rajasthan Green Hydrogen Policy, 2023, offering incentives such as rebates on transmission and distribution charges, exemptions on surcharges, priority land allocation, subsidies for research centers, and more.

Madhya Pradesh:

The state has incorporated green hydrogen initiatives into its renewable energy policy, extending incentives to electrolyser manufacturing units and investments in the renewable energy equipment sector.

Tamil Nadu and Odisha:

Tamil Nadu is finalizing its green hydrogen policy, while Odisha has announced exemptions on surcharges, transmission charges, and SGST waivers, enhancing the attractiveness of green power production.

These state-level initiatives collectively signal a strong commitment to the growth of the green hydrogen sector in India, fostering an environment conducive to innovation, investment, and sustainable energy development. The alignment of state and central policies underscores India’s determination to play a leading role in the global green hydrogen revolution.

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