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MNRE Issues Scheme Guidelines for Implementation of Green Hydrogen Under SIGHT Programme

MNRE announces guidelines for a 450,000 TPA green hydrogen production scheme under the SIGHT Programme, enhancing clean energy transition and self-reliance.

KJ Staff
Green Hydrogen Plant (Photo Source: greenhydrogen-india.com)
Green Hydrogen Plant (Photo Source: greenhydrogen-india.com)

In a significant move towards a sustainable energy future, the Ministry of New and Renewable Energy (MNRE) has announced the guidelines for the ‘Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme – Component II: Incentive Scheme for Green Hydrogen Production (under Mode 1)- Tranche-II.’ The guidelines, notified on July 3, 2024, aim to enhance India's green hydrogen production capabilities, with a total capacity of 450,000 tonnes per annum (TPA).

Key Highlights of the Scheme

Tranche-II is designed to accommodate 450,000 TPA of green hydrogen production. Of this, 40,000 TPA is reserved for biomass-based pathways (bucket-II), while the remaining capacity is available for technology-agnostic pathways (bucket-I).

The Solar Energy Corporation of India (SECI) will oversee the implementation of this tranche, with a Request for Selection (RfS) to be issued shortly. The bidding will be competitive, based on the least average incentive quoted by bidders.

  • For bucket-I, the minimum bid is set at 10,000 TPA and the maximum at 90,000 TPA.

  • For bucket-II, the minimum bid capacity is 500 TPA, with a maximum of 4,000 TPA.

Bidders can participate in one or both buckets, but the maximum capacity that a single bidder can be allotted is capped at 90,000 TPA.

A Step Towards Self-Reliance

The SIGHT Programme is a key component of the National Green Hydrogen Mission, which was launched on January 4, 2023, with a substantial financial outlay of Rs. 19,744 crores up to FY 2029-30. This mission is a cornerstone of India's efforts to achieve Aatma Nirbhar Bharat (self-reliant India) through the adoption of clean energy technologies.

Environmental and Economic Impact

The successful implementation of Tranche-II is expected to have profound impacts on India's energy landscape:

  • Decarbonisation: Significant reduction in carbon emissions through the adoption of green hydrogen, contributing to global climate goals.

  • Energy Independence: Reduced reliance on fossil fuel imports, enhancing energy security.

  • Technological Leadership: Positioning India as a leader in green hydrogen technology and markets, encouraging innovation and investment in the sector.

India's commitment to green hydrogen not only promises substantial domestic benefits but also serves as an inspiration for the global transition to clean energy. The strategic incentives and structured implementation plans highlight India's proactive approach in addressing climate change and fostering sustainable development.

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