The Government of India is accelerating efforts to position the country as a global hub for the production, usage and export of green hydrogen and its derivatives under the National Green Hydrogen Mission. The mission targets a green hydrogen production capacity of 5 million metric tonnes per annum by 2030, backed by a series of financial incentives and policy reforms aimed at lowering production costs and ensuring stable demand.
To strengthen domestic manufacturing, the government has awarded incentives for electrolyser production capacity of 3,000 MW per annum to 15 companies, with total support amounting to ?4,440 crore. In parallel, 18 companies have secured incentives to produce 8.62 lakh tonnes of green hydrogen annually, while two firms have been awarded contracts to supply 20,000 tonnes per annum to refineries. Additionally, the Solar Energy Corporation of India has discovered prices for the production and supply of 7.24 lakh tonnes per annum of green ammonia to 13 fertilizer units nationwide, helping establish long-term offtake visibility.
Cost reduction measures have also been introduced to make projects more viable. Green hydrogen and green ammonia plants commissioned before December 31, 2030, and powered by renewable energy will receive a 25-year exemption from Inter State Transmission System charges. Units operating in Special Economic Zones can avail duty benefits for the installation and maintenance of renewable energy equipment for captive use, further lowering operating costs.
At the same time, India is optimising its energy mix by rapidly scaling up affordable renewable energy capacity through competitive bidding and large-scale solar and wind deployments. The government has issued standard bidding guidelines for grid-connected renewable projects, eased equipment approval norms for hydrogen-focused plants in SEZs, allowed 100 percent foreign direct investment under the automatic route, and expanded infrastructure through solar parks and ultra-mega renewable projects. Transmission networks are also being strengthened under the Green Energy Corridor Scheme, with ISTS charge waivers and new substations and lines planned through 2030 to ensure smooth evacuation of renewable power.
These measures collectively aim to reduce green hydrogen costs, encourage industrial decarbonisation and create a predictable ecosystem for long-term investment and growth in the clean energy sector.