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Updated: Jul 23, 2023

The National Green Hydrogen Mission was approved by the Union Cabinet on 4 January 2022.



Making India a leading producer and supplier of Green Hydrogen in the world.

Other objectives of this mission are:

  • Developing green hydrogen production capacity of at least 5 MMT (Million Metric Tonne) per annum, alongside adding renewable energy capacity of about 125 GW (gigawatt) in India by 2030.

  • It aims to entail over Rs 8 lakh crore of total investments and is expected to generate six lakh jobs.

  • It will also lead to a cumulative reduction in fossil fuel imports by over Rs 1 lakh crore and an abatement of nearly 50 MT of annual greenhouse gas emissions.


Recently, the Ministry of Power (MoP) announced a Green Hydrogen Policy India (GHP).

The policy has set a target of 5 million tonnes per annum (MTPA) of green hydrogen production by 2030, more than 80% of the current hydrogen demand in the country.

Under the green hydrogen policy India, the government is offering to set up manufacturing zones for production, connectivity to the ISTS (Inter-State Transmission System) on priority basis, and free transmission for 25 years if the production facility is commissioned before June 2025.

This means that a green hydrogen producer will be able to set up a solar power plant in Rajasthan to supply renewable energy to a green hydrogen plant in Assam and would not be required to pay any inter-state transmission charges.

Besides, producers will be allowed to set up bunkers near ports for storage of green ammonia for export by shipping.

Manufacturers of Green hydrogen and ammonia are allowed to purchase renewable power from the power exchange or set up Renewable Energy (RE) capacity themselves or through any other developer, anywhere.

It provides facility for producers to bank any surplus renewable energy generated with discoms (power distribution companies) for up to 30 days and use it as required.


Here are some significances of the green hydrogen policy India-:

  • India’s largest oil refiner, Indian Oil Corp (IOC) estimates that GHP measures will reduce the cost of green hydrogen production by 40-50%.

  • Fuels like Green Hydrogen and Green Ammonia are vital for any nation's environmentally sustainable energy security.

  • India has already committed to achieving net-zero carbon emissions by 2070, and green hydrogen will play a significant role as a disruptive feedstock in India's transition from oil and coal.

  • The GHP lays a solid foundation for developing a competitive green hydrogen sector in India.


Here are some of the challenges associated with the green hydrogen policy India-:

  • Charges on Transmission: Producing 1kg of green hydrogen takes about 50kWh of electricity (with electrolyser efficiency of 70%).

  • Lesser Cost-Effective than Green Hydrogen: In cases where the green hydrogen is produced from a remotely-located RE plant, the landed cost of power determines the cost of output which ranges from ₹3.70 to ₹7.14 per kWh.

  • Reluctance of States: Many public sector electricity utilities are unwilling to let go of their monopoly in power distribution. The RE-rich states are either moving away from allowing RE banking or introducing regulations to restrict this facility.

  • Lesser Margins for Producers: The GHP omits to mention any waiver of ISTS losses for green hydrogen and ammonia projects.

  • Unwillingness of Industries: Industrial sectors such as chemicals, fertilizers, steel and refineries are unlikely to transition to low carbon alternatives because of the higher associated costs. Such industries might not find the transition viable with no incentives to reduce emissions.

National Green Hydrogen Mission|| Grokalp
Green Hydrogen Mission


Hydrogen association of India, At the end of last century Knowledge and Natural Gas were assigned as hall mark of 21st Century, but now we have realized in the first few years of this century that the Natural Gas alone will not be able to help us reduce our movement for containing and reducing the CO2 emission. In the process of decarburizing our sources of energy, the scientist’s world over has accelerated the innovations on finding sustainable alternate sources of energy, and we believe that the research is narrowing down to "zero carbon fuel Hydrogen", which only has the potential to fulfill the need to be a clean, reliable and sustainable energy carrier, satisfying the need of both - the hearth and the wheel.


Due to green hydrogen mission in India, India is leading the charge in green hydrogen production, leveraging abundant renewable resources and setting ambitious targets. The National Green Hydrogen Mission aims to produce at least 5 million tons of green hydrogen by 2030, positioning India as a major player in the global market. With substantial incentives and renewable energy policies, India is driving scale, reducing costs, and mitigating risks to create a robust green hydrogen ecosystem.

Key Points:

  1. Supply-side incentives: India allocates INR 17,490 crore (US$2.1 billion) to incentivize electrolyzer manufacturing and green hydrogen production, rivalling commitments made by the US and EU. These measures drive economies of scale, attract investments, and lower production costs.

  2. Renewable energy policies: India focuses on reducing power costs, a significant component of green hydrogen production expenses. Policy frameworks waive transmission charges, enable open access contracts, and optimize renewable energy contracts and banking mechanisms to lower per-unit costs.

  3. Green hydrogen hubs: To overcome transport challenges, India emphasizes establishing green hydrogen hubs. These hubs connect production centers with consumption centers, reducing costs and promoting shared infrastructure. Promising hub locations include Kerala, Tamil Nadu, Maharashtra, and Odisha.

  4. All-encompassing approach: India's mission encompasses market development, pilot projects, R&D investment, regulations, and more. Collaboration between public and private sectors, state-level policies, and rapid adoption in key sectors like green steel and transportation are critical for success.

Conclusion: India's National Green Hydrogen Mission drives a sustainable future, leveraging renewable resources and setting the stage for a robust green hydrogen economy. With incentives, policies, and strategic actions, India aims to achieve climate goals, enhance energy independence, and bolster industrial competitiveness. The revolution is underway, propelling India towards a cleaner and greener future.


Ques: What is the National green hydrogen Mission for UPSC?

Ans: It is a program to incentivize the commercial production of green hydrogen and make India a net exporter of the fuel. The green hydrogen mission will facilitate demand creation, production, utilization and export of Green Hydrogen.

Ques: What is the green hydrogen policy in the country?

Ans: Under the green hydrogen policy, the government is offering to set up manufacturing zones for production, connectivity to the ISTS (Inter-State Transmission System) on priority basis, and free transmission for 25 years if the production facility is commissioned before June 2025.

Ques: How is hydrogen used for decarbonization?

Ans: Clean hydrogen has three primary applications in a decarbonized economy: energy storage and load balancing, as a feedstock, and as a fuel. These applications occur in all sectors, including transportation, industry, agriculture and power.

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2 kommenttia

Extremely informative content and very well put together 👍👍

Neelotpal Pande
Neelotpal Pande
08. toukok. 2023

Thank you so much Maanya!!

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