The Union Cabinet, headed by Prime Minister Narendra Modi, on Wednesday approved an initial outlay of Rs 19,744 crore for the National Green Hydrogen Mission in a bid to cut emissions and become a major exporter in the field, said union minister Anurag Thakur at a press briefing on Cabinet decisions in Delhi. The move is targeted to help India, one of the world’s biggest greenhouse gas emitters, achieve net-zero carbon emissions by 2070.
To encourage manufacturing of low-cost equipment& technologies, two types of incentives will be given – incentives will be given on electrolyser manufacturing for 5 years and incentive on production of green hydrogen. Green hydrogen hubs will also be developed, said Thakur.
Green Hydrogen Hub will be developed to bring buyers and producers under one roof, said Thakur.
Cabinet approves Green Hydrogen Mission under which 50 lakh tonnes of green hydrogen will be produced per annum by 2030.
Carbon-free hydrogen, which can be used as fuel in automobiles and as an energy source in industries such as oil refineries and steel plants, is produced by splitting water. When electricity generated from renewable sources such as the sun is used to split water through electrolysis, green hydrogen is produced. Oxygen is a by-product of such a process.
The initial outlay for the mission will be Rs 19,744 crore, including an outlay of Rs 17,490 crore for the SIGHT programme, Rs 1,466 crore for pilot projects, Rs 400 crore for R&D, and Rs 388 crore towards other mission components.
The Ministry of New and Renewable Energy (MNRE) will formulate the scheme guidelines for implementation.
The mission seeks to promote development of green hydrogen production capacity of at least 5 MMT (Million Metric Tonnes) per annum with an associated renewable energy capacity addition of about 125 GW in the country by 2030.
It envisages an investment of over Rs 8 lakh crore and creation of over 6 lakh jobs by 2030.
It will also result in cumulative reduction in fossil fuel imports of over Rs 1 lakh crore and abatement of nearly 50 MMT of annual greenhouse gas emissions by 2030.
Prime Minister Narendra Modi had announced the launch of National Hydrogen Mission during his Independence Day speech on August 15, 2021. The proposal was passed by the Union cabinet on Wednesday.
“Cabinet has cleared National Hydrogen Mission. India will be the global hub of green hydrogen,” said Thakur. The Union Cabinet also approved Sunni Dam Hydroelectric project worth Rs 2,614 crore.
Rs 2,539 crore has been approved for modernisation of DD and AIR, including modernisation of equipment, FM transmitters, new studios etc.
The Cabinet also gave ex-post facto approval for naming of Greenfield International Airport Mopa, Goa as ‘Manohar International Airport – Mopa, Goa’, as a mark of tribute to Manohar Parrikar, ex-defence minister and four-time Goa CM.