+
MNRE Announces Green Hydrogen Incentive Guidelines
POWER & RENEWABLE ENERGY

MNRE Announces Green Hydrogen Incentive Guidelines

The Ministry of New and Renewable Energy (MNRE) has announced guidelines for disbursing incentives aimed at boosting green hydrogen production to 450,000 metric tons per annum under Component II of the Strategic Interventions for Green Hydrogen Transition (SIGHT) program.

The SIGHT program is a critical element of India?s ?130.5 billion ($1.57 billion) National Green Hydrogen Mission, which aims to stimulate the growth of the green hydrogen sector from fiscal year 2025-26 to 2029-30. The program includes two components: Component I, which provides incentives for electrolyzer manufacturing with a financial outlay of ?44.4 billion ($541.2 million), and Component II, focusing on supporting green hydrogen production.

The Solar Energy Corporation of India (SECI) will manage the competitive bidding process and oversee the program?s execution. The incentive structure is designed to offer substantial support during the initial years of production, providing up to ?50 ($0.61)/kg in the first year, ?40 ($0.49)/kg in the second, and ?30 (~$0.37)/kg in the third. This tiered approach aims to gradually reduce support as the industry matures and becomes more competitive.

For products derived from green hydrogen, such as green ammonia, incentives will be based on the quantity of green hydrogen used. An equivalence factor of 0.1765 kg of green hydrogen per kg of green ammonia has been set by MNRE.

The program?s auctions will be divided into two categories: Technology Agnostic Pathways (Bucket I), with a capacity of 410,000 MT/annum, and Biomass-Based Pathways (Bucket II) offering 40,000 MT/annum. The maximum capacity allotted to a single bidder is capped at 90,000 MT per annum, with a minimum capacity set at 10,000 MT for Bucket I. For Bucket II, the maximum capacity is 4,000 MT per annum, and the minimum is 500 MT per annum. Bidders can participate in either or both categories.

Bidders will be ranked based on the average incentive requested over the three years, calculated by taking the average of the incentives requested for each year. Capacity will be allocated from the lowest to the highest average incentive requested.

The eligibility criteria for bidding vary depending on the pathway chosen. For ?Technology Agnostic Pathways,? bidders must have a net worth of at least ?150 million ($1.8 million) per thousand MTPA of quoted production capacity of green hydrogen. For ?Biomass-Based Pathways,? the requirement is ?15 million ($180,000) per thousand MTPA of quoted production capacity. Bidders can be single companies or joint ventures.

A monitoring committee chaired by the Secretary of MNRE will oversee the program?s implementation. Additionally, MNRE has issued guidelines for funding testing facilities, infrastructure, and institutional support to develop standards and a regulatory framework. The program will be operational until 2026, with a total outlay of ?2 billion (~$23.95 million).

The Ministry of New and Renewable Energy (MNRE) has announced guidelines for disbursing incentives aimed at boosting green hydrogen production to 450,000 metric tons per annum under Component II of the Strategic Interventions for Green Hydrogen Transition (SIGHT) program. The SIGHT program is a critical element of India?s ?130.5 billion ($1.57 billion) National Green Hydrogen Mission, which aims to stimulate the growth of the green hydrogen sector from fiscal year 2025-26 to 2029-30. The program includes two components: Component I, which provides incentives for electrolyzer manufacturing with a financial outlay of ?44.4 billion ($541.2 million), and Component II, focusing on supporting green hydrogen production. The Solar Energy Corporation of India (SECI) will manage the competitive bidding process and oversee the program?s execution. The incentive structure is designed to offer substantial support during the initial years of production, providing up to ?50 ($0.61)/kg in the first year, ?40 ($0.49)/kg in the second, and ?30 (~$0.37)/kg in the third. This tiered approach aims to gradually reduce support as the industry matures and becomes more competitive. For products derived from green hydrogen, such as green ammonia, incentives will be based on the quantity of green hydrogen used. An equivalence factor of 0.1765 kg of green hydrogen per kg of green ammonia has been set by MNRE. The program?s auctions will be divided into two categories: Technology Agnostic Pathways (Bucket I), with a capacity of 410,000 MT/annum, and Biomass-Based Pathways (Bucket II) offering 40,000 MT/annum. The maximum capacity allotted to a single bidder is capped at 90,000 MT per annum, with a minimum capacity set at 10,000 MT for Bucket I. For Bucket II, the maximum capacity is 4,000 MT per annum, and the minimum is 500 MT per annum. Bidders can participate in either or both categories. Bidders will be ranked based on the average incentive requested over the three years, calculated by taking the average of the incentives requested for each year. Capacity will be allocated from the lowest to the highest average incentive requested. The eligibility criteria for bidding vary depending on the pathway chosen. For ?Technology Agnostic Pathways,? bidders must have a net worth of at least ?150 million ($1.8 million) per thousand MTPA of quoted production capacity of green hydrogen. For ?Biomass-Based Pathways,? the requirement is ?15 million ($180,000) per thousand MTPA of quoted production capacity. Bidders can be single companies or joint ventures. A monitoring committee chaired by the Secretary of MNRE will oversee the program?s implementation. Additionally, MNRE has issued guidelines for funding testing facilities, infrastructure, and institutional support to develop standards and a regulatory framework. The program will be operational until 2026, with a total outlay of ?2 billion (~$23.95 million).

Related Stories

Gold Stories

Next Story
Infrastructure Urban

NABARD Holds Seminar on Vigilance, Integrity and Good Governance

National Bank for Agriculture and Rural Development (NABARD) organised a seminar on “Vigilance: Strengthening Integrity and Good Governance” on 25 August 2026 at its Head Office in Mumbai as part of the ongoing Vigilance Awareness Campaign 2026 being observed from 17 August to 16 November 2026, with the theme “Probity for Prosperity."" The seminar was graced by Suresh N Patel, Former Central Vigilance Commissioner, Government of India, as the chief guest and keynote speaker.  The programme was attended by G S Rawat, Deputy Managing Director, Dr Ajay K Sood, Deputy Managing Dire..

Next Story
Equipment

XCMG Unveils World's First 14,000-Ton Ring Crane for Heavy Lifting

XCMG has announced that the first main unit of the world's first 14,000-ton ring crane has rolled off the production line, marking a historic breakthrough in ultra-heavy lifting technology. Jointly developed by XCMG and Sinopec Heavy Lifting & Transportation Co., Ltd., the crane will be the largest-capacity ring crane ever built, setting a new benchmark for major construction projects worldwide.The crane features a modular configuration comprising two main units that work in tandem. The first main unit has completed final assembly and can independently perform lifting operations. Once both..

Next Story
Infrastructure Urban

Thriveni Logistics orders 200 tip trailers from Jagdamba trailers

Jagdamba Trailers (JTPL), one of India’s growing trailer manufacturers, has secured a significant order for 200 Tip Trailers from Thriveni Transport and Logistics Pvt. Ltd., a leading mining and logistics company serving operations across India and overseas.The order, placed for iron ore transportation, is a major milestone for JTPL, particularly as the company secured the business after competing with more than 10 established trailer manufacturers. It also strengthens an already successful relationship between the two companies. Approximately one and a half years ago, Thriveni Transport and..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code