DA Update: Scheme Guidelines issued for Green Hydrogen Production (under Mode 1)- Tranche-II” of the National Green Hydrogen Mission

The Ministry of New and Renewable Energy has issued guidelines for the Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme - Component II: Incentive Scheme for Green Hydrogen Production (Mode 1) - Tranche-II. This scheme aims to boost India's green hydrogen production and competitiveness.

Key Highlights:

1) Duration: FY 2025-26 to FY 2029-30

2) Total Outlay: ?13,050 crore

3) Objectives:

• Maximize production of green hydrogen and its derivatives
• Enhance cost-competitiveness vis-a-vis fossil-based alternatives
• Encourage large-scale utilization of green hydrogen

Implementation:

• Managed by Solar Energy Corporation of India (SECI)
• Incentives offered up to ?50/kg in the first year, ?40/kg in the second year, and ?30/kg in the third year through a competitive bidding process

Selection Process:

• Bidders will be selected based on the least average incentive demanded over three years
• Separate pathways for Technology Agnostic and Biomass-Based solutions

Incentive Payout:

• Based on allocated capacity or actual production, whichever is lower , verified annually

Major Financial Measure:

• The SIGHT Programme is a significant financial measure under the National Green Hydrogen Mission, with an outlay of ?17,490 crore aimed at supporting domestic manufacturing of electrolysers and green hydrogen production.

Why This Matters:

• This initiative represents a significant step toward sustainable energy, reducing dependency on fossil fuels, and promoting green technology in India. The allotted funds of ?13,050 crore underscore the government's commitment to advancing green hydrogen production.

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