PHDCCI presents recommendations to boost National Green Hydrogen Mission of India

The PHD Chamber of Commerce and Industry (PHDCCI) has made ten crucial recommendations to the Indian government in an effort to hasten the National Green Hydrogen Mission, an initiative with a budget outlay of Rs 197.44 billion. The recommendations have been introduced ahead of the next third international climate summit. These suggestions are of the utmost significance as they emerge at a crucial moment in India’s determined attempts to fully adopt more ecologically friendly and sustainable energy sources.

The 10 suggestions made by the PHDCCI included: to encourage the recognition of green hydrogen and green ammonia in the harmonised list of infrastructures, zero GST rate for green hydrogen and green ammonia to promote the expansion of the hydrogen ecosystem. It further suggests to defer the imposition of basic customs taxes on imported electrolysers and associated equipment required for the generation, delivery, and storage of green hydrogen until 2030. It further recommends the continuation of tax incentives under section 115BAB for the generation of green hydrogen and green ammonia and the manufacture of electrolysers until December 31, 2030. PHDCCI also encourages the addition of sustainable aviation fuel and other green hydrogen derivatives to the list of activities that are permitted to trade carbon credits. Additionally, in order to enable the production of green hydrogen and green ammonia at lower industry costs and increased global competitiveness, suggestions have been given for changes to the special economic zone (SEZ) regulations. Another proposal includes relaxation of SEZ rules specifically tailored to support clean energy facilities that supply power to green hydrogen or green ammonia plants. Other measures such as expedited land allocation, streamlined auction processes, payment flexibility through annuity installments, and the development of shared-use infrastructure for green hydrogen projects, the removal of extra charges associated with selling power from solar projects in certain states, thereby fostering the development of clean energy projects aimed at green hydrogen production, the establishment of a Center of Excellence dedicated to hydrogen, offering training, capacity-building programs, and testing facilities for electrolysers and storage tanks, all in accordance with international standards have been also listed in the recommendations.

Together with these suggestions, the goals of the National Green Hydrogen Mission will help in reducing carbon emissions and fostering innovation and economic growth. The success of the mission also depends on the identification and creation of green hydrogen hubs in states and areas with the capability of extensive hydrogen production and usage. These measures will promote the development of the green hydrogen industry as well as establish India as a global leader in sustainable energy options, paving the way for a more sustainable and independent future.