The Ministry of New and Renewable Energy (MNRE) has launched a programme with a budget of Rs 2 billion through FY 2025-26 to drive innovation in green hydrogen production and utilisation across sectors. Key areas include decentralised production, using methods such as floating solar, biomass, and wastewater, along with applications in offgrid energy, cooking, heating, and industrial sectors. Aligned with the National Green Hydrogen Mission (NGHM), the programme also targets replacing fossil-based hydrogen in sectors like ammonia production and petroleum refining and blending it into city gas systems.
The implementation guidelines, detailed in the MNRE document, includes project selection, call for proposals, evaluation and award, and execution and commissioning. To oversee the scheme, Scheme Implementing Agencies (SIAs) – which could be the National Institute of Solar Energy (NISE), National Institute of Bio Energy (NIBE), or Solar Energy Corporation of India (SECI) – will be appointed. The SIA will receive a fee of 0.5 per cent of the sanctioned amount, and shall submit the Project Completion Report (PCR) to the Project Apprasial Committee (PAC) within one month from the completion of the project. The SIA will select projects considering innovation, financial support as a portion of total project cost, scalability potential, and projected green hydrogen output. A Call for Proposals will be issued by the SIA, and eligible Executing Agencies (EAs) may include CPSUs, State-PSUs, NGOs, and Indian R&D institutions. Proposals will be screened by the SIA’s Screening Committee, followed by a Project Appraisal Committee (PAC) and final approval by the NGHM Advisory Group. Upon MNRE’s administrative sanction, the SIA will issue Letters of Award (LoA) to selected EAs. Disbursements of the Central Financial Assistance (CFA) will occur in stages: 20 per cent on LoA issuance, 70 per cent based on milestones, and 10 per cent upon project completion.
In November 2024, the MNRE proposed establishing Centres of Excellence under the NGHM to advance green hydrogen R&D, offering up to 50 per cent funding for projects focused on production, storage, and utilisation.
