On 30th June 2023, the Ministry of New & Renewable Energy (MNRE) announced comprehensive guidelines for the implementation of the Strategic Interventions for Green Hydrogen Transition (SIGHT) programme: Component I – “Incentive scheme for Electrolyser Manufacturing” and Component II – “Incentive Scheme for Green Hydrogen Production”.
- SIGHT programme is a major financial measure under the National Green Hydrogen Mission, with an outlay of Rs 17,490 Crore.
- SIGHT programme aims to make India a global leader in the production and export of green hydrogen.
i. Component 1 has been allocated a significant amount of Rs 4,440 crore for the manufacturing of electrolysers from FY26 to FY30.
ii. Component 2, on the other hand, has received an allocation of Rs 13,050 crore for green hydrogen production during the same period.
Key Points:
i.These guidelines have been introduced to expedite the adoption of green hydrogen technology in India, leading to a sustainable and clean energy future.
ii.The MNRE will implement the Strategic Interventions for Green Hydrogen Transition (SIGHT) Program through the Solar Energy Corporation of India (SECI) as implementing agency between the financial year (FY) 2025-26 and FY 2029-30.
Component 1: Incentive Scheme for Electrolyser Manufacturing
Component 1 provides government support for electrolyser manufacturing, with incentives offered per kilowatt (kW) of manufacturing capacity. These incentives will be provided for a duration of five years, commencing from the establishment of the manufacturing facility.
- Additionally, bidders are required to demonstrate a minimum level of local value addition (LVA) annually, promoting local manufacturing and indigenization.
- The target capacity for the first phase of Component 1 is set at 1,500 megawatts (MW), laying a solid foundation for electrolyser manufacturing in the country.
Click here to know more about Component I
Component 2: Incentive Scheme for Green Hydrogen Production
Component 2 focuses on the production of green hydrogen and provides two modes of participation.
- In Mode 1, interested parties can bid based on the minimum incentive demanded over a three-year period, utilising a competitive bidding mechanism.
- Mode 2 involves SECI aggregating demand and initiating a competitive bidding system for procuring green hydrogen and its derivatives at the most economical cost.
Incentives for green hydrogen production will be provided for three years from the commencement of production, with a tiered structure.
Click here to know more about Component II
Additional info:
The MNRE has set an ambitious target of 4.5 lakh tonnes per annum (LTPA) for green hydrogen production capacity. This capacity is divided into two pathways: a technology-agnostic pathway targeting 4.10 LTPA and a biomass-based pathway with a capacity of 40,000 tonnes per annum.
Expected Outcome:
The guidelines for the National Green Hydrogen Mission represent a significant step toward achieving India’s renewable energy goals and transitioning to a greener and more sustainable future. These initiatives not only strengthen the manufacturing sector but also drive the widespread adoption of green hydrogen as a clean and efficient energy source.
About Ministry of New & Renewable Energy:
Union Minister – Raj Kumar Singh (Constituency : Arrah in Bihar)
Ministers of State – Bhagwanth Khuba
