New Delhi: The government is going to the first tranche of bids for both green hydrogen production and the manufacturing of electrolysers within the first half of FY24, an official in the know of the matter told PSU Watch. “We are hoping to launch the bid within this quarter itself. However, if it doesn’t happen. In the first half of 2023-24, we will definitely come out with the first bids for both green hydrogen production and manufacturing of electrolysers,” said the source.
The source said that the draft note for bids is ready and has already been circulated. “We have received a lot of comments. Meetings with stakeholders are on. We are taking inputs from them,” said the source.
With incentives covering 10 percent of the cost incurred on producing green hydrogen (at Rs 30 per kg), the government is expecting 3.6 million tonne hydrogen production capacity under the Strategic Interventions for Green Hydrogen Transition (SIGHT) scheme under the National Green Hydrogen Mission in the next three years. The government also plans to support 3,000 MW annual electrolyser manufacturing capacity for the next five years. The government plans to gradually reduce the amount offered as support to industry leaders through a competitive bidding process on an annual basis.
The Union Cabinet had approved Rs 19,744 crore as the initial outlay under the National Green Hydrogen Mission in January this year. Of this, Rs 17,490 crore was allocated to boost domestic manufacturing under SIGHT.
The government aims to take India’s green hydrogen production capacity to at least 5 MMT per annum by 2030, with an associated renewable energy capacity installation of around 450 GW by the said timeline.
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