India Launches ₹13,050 cr incentive scheme for green hydrogen

The Ministry of New and Renewable Energy (MNRE) has sanctioned the implementation of the Strategic Interventions for Green Hydrogen Transition (SIGHT) programme—Component II, which focuses on the Incentive Scheme for Green Hydrogen Production. This initiative, under Mode 1, falls under Tranche II of the National Green Hydrogen Mission and is set to span from FY 2025-26 to FY 2029-30. The scheme has been allocated a substantial budget of ₹13,050 crores, aimed at covering all modes under this component.

The primary objectives of the SIGHT programme are threefold: to maximize the production of Green Hydrogen and its derivatives in India, to enhance the cost competitiveness of Green Hydrogen compared to fossil-based alternatives, and to encourage the large-scale utilization of Green Hydrogen and its derivatives. This move is part of India’s broader strategy to transition towards sustainable energy sources and reduce dependence on fossil fuels.

The implementation methodology outlined by the MNRE specifies that the scheme will be carried out in accordance with detailed guidelines. The financial expenditure required for this scheme will be sourced from the budget provision under the Hydrogen Mission head. The Solar Energy Corporation of India (SECI) has been designated as the implementing agency responsible for the execution of this scheme. SECI’s role will be crucial in ensuring that the scheme’s objectives are met efficiently and effectively.

The approval for this initiative has been granted by the Minister of New and Renewable Energy, reinforcing the government’s commitment to promoting green energy solutions. The scheme is expected to play a significant role in positioning India as a leader in the global green hydrogen market, leveraging the country’s renewable energy resources to produce and utilize Green Hydrogen at scale.

By implementing this incentive scheme, the MNRE aims to foster innovation and investment in the green hydrogen sector, potentially leading to technological advancements and cost reductions. This, in turn, could make Green Hydrogen a viable and attractive alternative to fossil fuels, supporting India’s climate goals and contributing to global efforts to mitigate climate change.

The SIGHT Programme represents a strategic and forward-looking approach by the Indian government to drive the green hydrogen agenda, with the potential to create significant economic and environmental benefits. Through this initiative, India hopes to establish itself as a key player in the global transition to sustainable energy.