National Hydrogen Mission policy’s second phase is currently under consideration by the central government’s expenditure finance committee, Minister of Power and New & Renewable Energy RK Singh said.
The Ministry of Power notified the first part of the National Hydrogen Mission policy on green hydrogen and green ammonia on February 17. When asked about when the second part of the policy would be announced, the minister said, “Our policy is with the expenditure finance committee. There had been a meeting four-five days back to discuss whatever we have proposed and hopefully, the expenditure finance committee will apply their mind.”
The power minister was talking after the launch of the ‘Virtual Smart Grid Knowledge Center and Innovation Park’ as part of the Azadi ka Amrit Mahotsav Programme.
The second part of the National Hydrogen Policy is likely to focus on issues related to viability gap funding (VGF) for green hydrogen and green ammonia projects and possible incentives to boost manufacturing. The expenditure finance committee will study the viability of the plan and makes suitable recommendations to the approval authority.
Escalating concerns over climate change and global warming have compelled governments across the world to commit to reducing emissions. Green hydrogen, in particular, has generated a lot of interest given its ability to generate large scale energy with a low carbon footprint. On Independence Day last year, Prime Minister Narendra Modi launched the ‘National Hydrogen Mission’ from the Red Fort with the ambition to boost the growth of green hydrogen in the country to work towards being energy independent.
After the first part of the policy was made public, all eyes are now on the second round of announcements, which will require approval from the Union Cabinet. The industry is hopeful that the second part of the policy will provide economic incentives to boost growth in the sector. They also seek more clarity on how the government could facilitate demand by measures like hydrogen and ammonia purchase obligations.
Source: Money ControlTags: Expenditure finance committee, India, Natyional Hydrogen Misssion, Renewable Energy, RKSingh