India has made plans for the introduction of a production-linked incentive (PLI) scheme for the encouragement of manufacturing electrolysers utilised to extract hydrogen from water.

The ministry of power and the policy think tank of the government, NITI Aayog, are currently working on the specifics of the PLI scheme, which is expected to be launched by September. The PLI scheme will likely run for up to five years.

A favorable policy for encouraging the manufacturing of electrolysers is important for India to decrease the cost of green hydrogen. The richest billionaires in the country, Mukesh Ambani and Gautam Adani have announced their mega plans to transform India into a green hydrogen hub.

State-run Indian Oil Corporation Limited, which is the largest oil refiner in the country, had earlier agreed to partner with ReNew Power, a clean energy producer, and Larsen and Toubro Limited to produce green hydrogen.

Power minister R.K. Singh frequently refers to the Indian government’s plan to increase domestic manufacturing of electrolysers. The government aims to make the country a hub for green hydrogen which is produced by splitting water into hydrogen and oxygen in an electrolyser with the help of power from renewable sources.

The first part of the new green hydrogen policy was unveiled by the power ministry this February. It promises several things including cheaper renewable power.

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