India’s National Green Hydrogen Mission gets cabinet approval; 6 lakh jobs, reduction in fossil fuel imports among likely outcomes by 2030

New Delhi, January 4, 2023: The National Green Hydrogen Mission (NGHM) has got cabinet approval, paving the path for India to become a Global Hub for production, utilization and export of Green Hydrogen and its derivatives.

The Mission’s objective is to help India to become energy independent and decarbonise major sectors of the economy.
According to the government of India, the initial outlay for the Mission will be Rs.19,744 crore, including an outlay of Rs.17,490 crore for the Strategic Interventions for Green Hydrogen Transition Programme (SIGHT), Rs.1,466 crore for pilot projects, Rs.400 crore for R&D, and Rs. 388 crore towards other Mission components. 

NGHM outcomes by 2030

The Mission will result in the following likely outcomes by 2030:

• Development of green  hydrogen production capacity of at least 5 MMT (Million Metric Tonne) per annum with an associated renewable energy capacity addition of about 125 GW in the country
• Over Rs. 8 lakh crore in total investments
• Creation of over Six lakh jobs
• Cumulative reduction in fossil fuel imports over Rs. One lakh crore
• Abatement of nearly 50 MMT of annual greenhouse gas emissions

The Mission will have wide ranging benefits- creation of export opportunities for Green Hydrogen and its derivatives; Decarbonisation of industrial, mobility and energy sectors; reduction in dependence on imported fossil fuels and feedstock; development of indigenous manufacturing capabilities; creation of employment opportunities; and development of cutting-edge technologies. 

India’s Green Hydrogen production capacity is likely to reach at least 5 MMT per annum, with an associated renewable energy capacity addition of about 125 GW.  The targets by 2030 are likely to bring in over Rs. 8 lakh crore investments and create over 6 lakh jobs.  Nearly 50 MMT per annum of CO2 emissions are expected to be averted by 2030.

The Mission will facilitate demand creation, production, utilization and export of Green Hydrogen.  Under the Strategic Interventions for Green Hydrogen Transition Programme (SIGHT), two distinct financial incentive mechanisms – targeting domestic manufacturing of electrolysers and production of Green Hydrogen – will be provided under the Mission.  The Mission will also support pilot projects in emerging end-use sectors and production pathways.  Regions capable of supporting large scale production and/or utilization of Hydrogen will be identified and developed as Green Hydrogen Hubs.

As per the government officials, an enabling policy framework will be developed to support establishment of Green Hydrogen ecosystem.   A robust Standards and Regulations framework will be also developed.  Further, a public-private partnership framework for R&D (Strategic Hydrogen Innovation Partnership – SHIP) will be facilitated under the Mission; R&D projects will be goal-oriented, time bound, and suitably scaled up to develop globally competitive technologies.  A coordinated skill development programme will also be undertaken under the Mission.

All concerned Ministries, Departments, agencies and institutions of the Central and State Governments will undertake focussed and coordinated steps to ensure successful achievement of the Mission objectives.  Ministry of New & Renewable Energy will be responsible for overall coordination and implementation of the Mission.