Policies by States
Few states in India have declared their Green Hydrogen Policy, while others are in the process of its release. Policies of a few state governments are depicted below for an overview of the determination and efforts of state governments towards the development of a Green Hydrogen Ecosystem.
UTTAR PRADESH: Uttar Pradesh Green Hydrogen Policy
Objectives:
- Target of achieving 1 MMTPA production of Green Hydrogen by 2028.
- Creation of 1.20 lakh jobs by 2028.
- The capital subsidy of 10% - 30% to be provided depending on the geographical area of investment.
- Enabling investment in setting up GH₂/GA production.
- The establishment of two State Centres of Excellence (SCoEs) is also proposed to lead research, development and techno-economic innovation activities.
Incentives:
- The first five investments (excluding Meerut division) in Green Hydrogen projects will be provided capital subsidies to the tune of 40% of the total investment amount with a ceiling of ₹225 crore per project per year.
- Government/revenue land will be provided on lease at ₹1 per acre per year for government Public Sector Units (PSUs) for setting up Green Hydrogen projects. For investors from the private sector, the lease rate is ₹15,000 per acre per year.
RAJASTHAN: Rajasthan Green Hydrogen Policy
Incentives:
- Promote the development of an ecosystem for the production of Green Hydrogen.
- Formulate an environment for Industry and Research Institutions for R&D.
- 2000 KTPA of Green Hydrogen production capacity by 2030.
- Commission at least one Green Hydrogen valley and at least one Giga factory for electrolyser manufacturing.
- Cater to at least 20% of Green Hydrogen exports from India.
- Blend up to 10% Green Hydrogen in Natural Gas pipelines for gas produced within Rajasthan by 2030.
Objectives:
- 50% rebate for 10 years in transmission and distribution charges on installation of first 500 KTPA GH2 established within the state with upper limit fixed at 12,500 MW of RE capacity at the rate of 25 MW per KTPA.
- 100% exemption on additional and cross-subsidy surcharges for 10 years on purchasing renewable energy from a third party
- Land allotment for the generation of Green Hydrogen from treated or brackish water will be done on a priority basis.
- A subsidy of 30% with an upper limit upto ₹5 Crore for setting up a research centre.
- There is no prohibition on the capacity of captive power plants or the banking of generated electricity.
- 100% waiver on wheeling and transmission charges. Also, the banking charges for power plants will be reimbursed for 7 -10 years.
ANDHRA PRADESH: Andhra Pradesh Green Hydrogen and Green Ammonia Policy
Objectives:
- Achieve Green Hydrogen production up to the capacity of 0.5 Million Metric Tonnes Per Annum (MMTPA) or Green Ammonia production up to the capacity of 2.0 MMTPA in the next five years by harnessing the RE potential in the State.
- Promote the development of an eco-system for GH₂/ GA production.
- To attract investments, provide employment and improve the economy of the state.
- Creation of 12,000 jobs per MMTPA production of Green Hydrogen in the state.
- Promote the setting up of Green Hydrogen and Green Ammonia and their related equipment manufacturing facilities in the state.
Incentives:
- 100% reimbursement of net SGST revenue to the developer from the sale of GH₂/GA within the state.
- 100% exemption from Electricity Duty for the power consumed for the production of GH₂/GA from RE plants (with or without storage).
- 25% of Intrastate charges shall be reimbursed to the developer with an upper limit of Rs. 10 lakhs/ MW/ year of installed electrolyser capacity.
- The cross-subsidy surcharge shall be reimbursed for the energy drawn from RE plants located within the state to produce GH₂/GA.
- Grid connectivity to the intra-state transmission system at the generation and production end respectively for RE plants established to produce GH₂/GA shall be granted on priority. APTRANSCO/ APDISCOM(s) will dispose of the proposals for the technical feasibility of evacuation within 21 days from the date of receipt of the application.
- Land allotment to be allocated on a priority basis at a lease rate of ₹31,000 per acre per year with an escalation of 5% every two years during the project period.
- 100% exemption from payment of stamp duty and land use conversion charges.
MAHARASHTRA: Maharashtra Harit Hydrogen Policy
Objectives:
- Achieve 500 kilotonnes per year (KTPA) of Green Hydrogen production capacity by 2030.
- Promote decarbonization in industries and the energy sector.
- Encourage the development and export of Green Hydrogen and its derivatives.
Incentives:
- Capital cost subsidy of 30% will be given to:
- First 3 anchor Green Hydrogen production projects.
- First 500 hydrogen-based fuel-cell passenger vehicles in the transport activities of the Maharashtra State Road Transport Corporation (MSRTC) with a maximum cap of ₹60 Lakh per vehicle.
- Development of Hydrogen Refuelling Station (HRS) with a maximum cap of ₹4.5 Crore.
- Constructing hydrogen transportation through pipeline (max. 10 Km) is limited to ₹2.5 Crore.
- 1% interest subsidy on hydrogen transport project.
- 100% exemption on stamp duty charges for land conversion.
- 60% discount on electricity transmission and wheeling charges for 10 years.
- Mandatory use of RE for hydrogen production.
- Waivers and exemptions on electricity duties and surcharges.
- Grant of ₹50/kg for blending Green Hydrogen with CNG/PNG for vehicles (for 5 years).
WEST BENGAL: West Bengal Green Hydrogen Policy
Objectives:
- Identification of Green Hydrogen demand centres by GIS mapping.
- Enabling investment in setting up GH₂/GA production.
- Setting up a State Centre of Excellence (SCoE) to support R&D activities for techno-economic innovation and guide other states in India for the same.
- Formulate and execute procurement and trade strategies for acquiring and exchanging GH₂/GA resources.
- Creation of employment by leveraging GH₂/GA development.
Incentives:
- 100% exemption in stamp duty and land conversion charges for the policy period.
- 100 % waiver of electricity duty charges is provided during the policy period.
- Banking of RE power is allowed for 30 days for GH₂/ GA production units.