The National Green Hydrogen Mission, with a budget of Rs 19,744 crore, was approved by the Union Cabinet with the goal of creating 5 million tonnes of green hydrogen annually by 2030. Out of total budget, the Center will offer incentives worth Rs 17,490 crore for a five-year period for the production of both electrolyzers and green hydrogen.
“The initial outlay for the Mission will be Rs.19,744 crore, including an outlay of Rs.17,490 crore for the SIGHT programme, Rs 1,466 crore for pilot projects, Rs 400 crore for R&D, and Rs 388 crore towards other Mission components," said an official statement, adding that the ministry of new and renewable energy (MNRE) will formulate the scheme guidelines for implementation of the respective components.
Even now, hydrogen is created, and by 2050, demand is expected to rise to 500–680 million tonnes from 87 million metric tonnes today. However, there is a catch: only a very small portion of the hydrogen produced at the moment is "green" in nature, with over 95% of it being based on fossil fuels. India’s National Green Hydrogen Mission is expected to add about 125 GW of renewable energy capacity to the country.
The cabinet resolution will support this goal through an incentive-based scheme as the government intends to produce five million tonnes of green hydrogen annually by 2030 in order to save 50 million tonnes of carbon emissions and save Rs. 1 lakh crore on fossil fuel imports.