The government of Uttar Pradesh (UP) has recently given its approval to green hydrogen policy, with the goal of shifting from traditional methods of hydrogen production to more environmentally friendly approaches. This initiative, announced in a cabinet meeting, aims to achieve an annual production of one million metric tonnes of green hydrogen by the year 2028.
In order to promote the development of green hydrogen industries, the government has implemented various incentives and subsidies totaling Rs 50.45 billion for businesses planning to establish operations within the next five years. These incentives comprise capital expenditure subsidies ranging from 10 per cent to 40 per cent for the initial five industries, as well as a full rebate on intrastate electricity charges and exemptions on transmission charges for interstate transactions. Furthermore, there will be a total exemption of electricity duty to provide additional support for industry expansion.
Recently, in February 2024, Union Minister for Steel and Civil Aviation virtually inaugurated India’s first green hydrogen plant in stainless steel sector. The plant had been commissioned by Hygenco at Jindal Stainless’s Hisar facility. In the same month, NTPC Green Energy Limited entered into a land lease agreement with Andhra Pradesh Industrial Infrastructure Corporation to establish an integrated green hydrogen hub.
