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Government Increases Allocation for Fertilizer Sector under SIGHT Programme of National Green Hydrogen Mission

MNRE increases Green Ammonia allocation under the National Green Hydrogen Mission to boost production and meet rising demand in the fertilizer sector.

Shivam Dwivedi
Government Increases Allocation for Fertilizer Sector under SIGHT Programme of National Green Hydrogen Mission (Representational Image Source:  Louisiana Illuminator)
Government Increases Allocation for Fertilizer Sector under SIGHT Programme of National Green Hydrogen Mission (Representational Image Source: Louisiana Illuminator)

The Ministry of New & Renewable Energy (MNRE) is driving forward the National Green Hydrogen Mission (NGHM), aiming for a production capacity of 5 million tonnes per annum of Green Hydrogen by 2030. As part of this mission, MNRE issued guidelines on January 16, 2024, for the implementation of the SIGHT Programme – Component II, which incentivizes the production of Green Ammonia under Mode 2A, specifically for the fertilizer sector. Initially, the capacity available for bidding under Tranche I of Mode 2A was set at 550,000 tonnes per annum of Green Ammonia.

Solar Energy Corporation of India (SECI) subsequently launched a Request for Selection (RfS) to identify Green Ammonia producers through a cost-based competitive bidding process.

With the increasing demand for Green Hydrogen and its derivatives across various sectors, MNRE has amended the scheme guidelines to expand the allocation for the fertilizer sector. The revised allocation under Mode 2A has been increased by 200,000 tonnes per annum, bringing the total to 750,000 tonnes per annum. This strategic adjustment underscores the commitment to fostering demand for Green Hydrogen and its derivatives within the country.

The National Green Hydrogen Mission, launched on January 4, 2023, with a budget of Rs. 19,744 crores up to FY 2029-30, aims to position India as a self-reliant leader in clean energy. The mission is expected to significantly decarbonize the economy, reduce dependence on fossil fuel imports, and establish India as a frontrunner in Green Hydrogen technology and market leadership.

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