Maharashtra introduces hydrogen policy

In order to boost renewable energy projects in the state, the Maharashtra state cabinet gave approval to the state’s Green Hydrogen Policy to promote renewable energy and green hydrogen projects in Maharashtra.

The state cabinet also approved Rs 8,562 crore for the implementation of this policy.

Maharashtra has become the first state of the country to introduce the green hydrogen policy. According to officials, Prime Minister Narendra Modi had announced the National Green Hydrogen Mission, that aimed at producing five million tonnes of green hydrogen annually in the country by 2023. This policy was formulated, recognising the potential of green hydrogen and related products in the state as well.

The policy will provide incentives to projects that procure renewable energy through open access, from in-state or out-of-state power distribution companies, power exchanges, for self-consumption. Green hydrogen and related production projects will be registered with the Energy Office.

As per the policy, 50 per cent and 60 per cent concession will be given in transmission charges and wheeling charges respectively for the next ten years from the time of project implementation.

Standalone and hybrid power plants will be given 100 per cent concession in power tariff for the next 10 years and 15 years respectively and will also be exempted from cross subsidy and surcharge.

Land earmarked for green hydrogen projects will be fully exempted from local body tax, non-agricultural tax and stamp duty.