India continues to waive transmission costs for green hydrogen plants

12 Apr 2023 CW Team

The move is intended to lower the cost of green hydrogen - hydrogen produced by splitting water with renewable electricity - by one-fifth.

The shift will make more green hydrogen production facilities eligible for the 25-year remission of transmission rates, which was previously accessible for plants established before July 2025.

Large-scale hydrogen and ammonia projects take three to four years to build, and many are unlikely to be operational by June 2025, according to a government official.

The country's goal is to manufacture green hydrogen at the world's lowest cost, at $1-$1.50 per kilogram, down from $4-$5 per kilogram now.

Reliance Industries and Adani Enterprises have established $1 per kg cost targets by 2030.

Other significant Indian corporations that have declared intentions to produce green hydrogen include Larsen & Toubro, Indian Oil, NTPC, JSW Energy, ReNew Power, and Acme Solar.

According to industry estimates, renewable energy, including transmission, accounts for 65%-70% of the cost of manufacturing green hydrogen.

Inter-state transmission costs between 1-2 rupees every unit of power transmitted. According to the official, every rupee reduction in renewable energy costs reduces the cost of green hydrogen by 60 Indian rupees ($0.73).

The hydrogen mission in India is anticipated to require 8 trillion Indian rupees ($98 billion) in investments by 2030, including 125 gigatonnes of non-fossil-based generation capacity and new transmission lines.

India also intends to provide green hydrogen producers with incentives worth at least 10% of their costs as part of a $2 billion initiative that will commence before the end of the year.

The government opposes broadening the concept of green hydrogen to include fuel derived from low-carbon energy sources, as some industrialized countries have requested at G20 meetings.

According to a government official, India has extended a waiver of transmission fees for renewable energy to hydrogen production plants that start up before January 2031 in order to become the world's cheapest producer of the fuel. The move is intended to lower the cost of green hydrogen - hydrogen produced by splitting water with renewable electricity - by one-fifth. The shift will make more green hydrogen production facilities eligible for the 25-year remission of transmission rates, which was previously accessible for plants established before July 2025. Large-scale hydrogen and ammonia projects take three to four years to build, and many are unlikely to be operational by June 2025, according to a government official. The country's goal is to manufacture green hydrogen at the world's lowest cost, at $1-$1.50 per kilogram, down from $4-$5 per kilogram now. Reliance Industries and Adani Enterprises have established $1 per kg cost targets by 2030. Other significant Indian corporations that have declared intentions to produce green hydrogen include Larsen & Toubro, Indian Oil, NTPC, JSW Energy, ReNew Power, and Acme Solar. According to industry estimates, renewable energy, including transmission, accounts for 65%-70% of the cost of manufacturing green hydrogen. Inter-state transmission costs between 1-2 rupees every unit of power transmitted. According to the official, every rupee reduction in renewable energy costs reduces the cost of green hydrogen by 60 Indian rupees ($0.73). The hydrogen mission in India is anticipated to require 8 trillion Indian rupees ($98 billion) in investments by 2030, including 125 gigatonnes of non-fossil-based generation capacity and new transmission lines. India also intends to provide green hydrogen producers with incentives worth at least 10% of their costs as part of a $2 billion initiative that will commence before the end of the year. The government opposes broadening the concept of green hydrogen to include fuel derived from low-carbon energy sources, as some industrialized countries have requested at G20 meetings. See also: Indian Army & NTPC arm sign agreement to build green hydrogen plants Cabinet approves NHPC's investment in India's largest hydro project

Infrastructure Urban

13 Oct 2025

Daikin Boosts Haryana’s Innovation Push with Rs 10 billion R&D Plan

Japanese multinational Daikin Industries has committed an investment of Rs 10 billion to set up a new research and development centre in Haryana. The proposed facility will focus on advanced technologies and sustainable industrial solutions, marking a significant boost to the state’s innovation and industrial ecosystem. The announcement follows the signing of a Memorandum of Understanding (MoU) in Osaka, Japan, during a visit by a Haryana government delegation held from October 6 to 8. The MoU was signed by Amit Kumar Agrawal, Commissioner and Secretary, Industries and Commerce Department, ..

Building Material

13 Oct 2025

Lloyds Metals to Build Rs 250 billion Steel Plant in Gadchiroli

Lloyds Metals & Energy Limited (LMEL) has announced an investment of Rs 250 billion aimed at transforming Gadchiroli in Maharashtra from a region once associated with the red corridor into a key industrial and growth hub. The company’s plans are centred on establishing an integrated steel production ecosystem, which will contribute significantly to regional development and employment. As part of its expansion strategy, LMEL is setting up a 4.5-million-tonne blast furnace in Gadchiroli, scheduled for completion by 2027–28, along with another 1.2-million-tonne facility in Chandrapur by 2029..

Infrastructure Urban

13 Oct 2025

UPI Crosses 500 Million Users, Fuels MSME and Digital Growth

The Unified Payments Interface (UPI) has achieved a new milestone, surpassing 500 million consumers and 65 million merchants across India. The platform, developed by the National Payments Corporation of India (NPCI), has expanded its reach to nearly 99 percent of the country’s pin codes, underlining its deep penetration into both urban and rural markets. According to a report by NPCI and the Boston Consulting Group (BCG) launched during the Global Fintech Fest 2025, UPI has evolved from being a digital payments mechanism into a key enabler of financial inclusion and small business growth. I..