The Uttar Pradesh (UP) government has recently approved the green hydrogen policy, intending to shift away from traditional hydrogen production methods towards more environmentally friendly alternatives. This initiative, announced during a cabinet meeting, aims to produce one million metric tonnes of green hydrogen annually by 2028.

To pace the growth of green hydrogen industries, the government has introduced various incentives and subsidies totalling Rs 50.45 billion for businesses intending to establish operations within the next five years. These incentives include capital expenditure subsidies ranging from 10% to 40% for the initial five industries, complete reimbursement of intrastate electricity charges and exemptions on transmission charges for interstate transactions. Additionally, there will be a total exemption of electricity duty to support industry expansion further.

In February 2024, the Union Minister for Steel and Civil Aviation virtually inaugurated India’s inaugural green hydrogen plant in the stainless steel sector. The plant, commissioned by Hygenco at Jindal Stainless’s Hisar facility, marked a significant milestone. Concurrently, NTPC Green Energy Limited finalised a land lease agreement with the Andhra Pradesh Industrial Infrastructure Corporation to establish an integrated green hydrogen hub during the same month.

The Cabinet has also sanctioned a plan to establish two units of 800 MW each at Anpara in Sonbhadra district, in collaboration with NTPC, at an estimated cost of Rs 8,624 crore. This endeavour will progress through a partnership split equally between the state government and NTPC. The financial arrangement entails a 30% equity participation from the state government and NTPC, with the remaining 70% to be funded through loans. As Sharma stated, the acquisition of the coal mine from nearby NCL (Northern Coalfields Ltd) will facilitate the production of cost-effective electricity. Two Memorandums of Understanding (MoUs) were inked with NTPC during the 2023 Global Investors Summit. Among these, the Cabinet approved the first proposal last year to establish two 800 MW units in Obra D. In contrast, the second proposal for two 800 MW plants received Cabinet approval on Tuesday.

Also Read | Government unveils pilot projects harnessing Green Hydrogen for industrial transformation

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