Maharashtra Pioneers Green Hydrogen With Approved Policy of Rs 8,500 Crore Investment

Mumbai, 4th July 2023: Maharashtra’s cabinet meeting today marked a significant milestone as the state approved the Green Hydrogen Policy, making it the first state in the country to announce such a progressive initiative. Chief Minister Eknath Shinde presided over the meeting, and an impressive budget of Rs 8,562 crore was sanctioned for the policy’s implementation.

The introduction of the National Green Hydrogen Mission by the Prime Minister, with a target of producing 5 million tonnes of green hydrogen annually by 2023, has prompted Maharashtra to harness the potential of green hydrogen and its associated products. The current hydrogen demand in the state stands at 0.52 million tonnes per annum, projected to rise to 1.5 million tonnes by 2030.

Under the newly announced policy, projects procuring renewable energy through open access, from either in-state or out-of-state power distribution companies, power exchanges, or for self-consumption, will be eligible for incentives. All green hydrogen and related production projects must be registered with the Energy Office, with submission of project facility details to Mahaurja based on an electrolyzer capacity of 25 thousand per MW.

To encourage the growth of these projects, a 50% concession on transmission charges and a 60% concession on wheeling charges will be granted for the next ten years from the project implementation date. Standalone and hybrid power plants will receive 100% concession in power tariffs for the next 10 and 15 years, respectively, and will also be exempt from cross-subsidy and surcharges.

Additionally, as per the Package Scheme of Incentives 2019, a subsidy of ₹50 per kg will be provided for blending green hydrogen into gas for a duration of 5 years. The first 20 green hydrogen refueling stations will be eligible for a 30% capital cost subsidy, up to a maximum of ₹4.50 crore. Furthermore, the first 500 green hydrogen-based fuel cell passenger vehicles will receive a capital cost subsidy of up to ₹60 lakh per vehicle, subject to a 30% capital cost subsidy.

Land designated for green hydrogen projects will enjoy full exemption from local body tax, non-agricultural tax, and stamp duty. Moreover, an annual budget of ₹4 crore for ten years has been approved to facilitate skilled manpower recruitment, training, skill development, and streamlined administrative procedures.

The Green Hydrogen Policy demonstrates Maharashtra’s commitment to renewable energy and sustainable development, paving the way for a greener and more environmentally conscious future.