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The National Green Hydrogen Mission (NGHM), launched on January 4, 2023, aims to position India as a leading hub for the production, use, and export of green hydrogen and its derivatives. With a substantial budget of ?19,744 Crore, this mission is designed to enhance India’s self-reliance in clean energy and inspire global shifts towards renewable energy. The mission’s goals include significant decarbonization of the economy, reduced reliance on fossil fuel imports, and establishing India as a leader in green hydrogen technology and markets.
To support these goals, the Ministry of New & Renewable Energy (MNRE) has introduced a new scheme to provide funding for testing facilities, infrastructure, and institutional support for developing standards and regulatory frameworks related to green hydrogen. This scheme, announced on July 4, 2024, will operate from 2024 to 2026 with a total budget of ?200 Crores. The initiative is focused on identifying and addressing gaps in existing testing facilities, creating new ones, upgrading current facilities, and ensuring the safety and efficiency of equipment used in the green hydrogen value chain. It also aims to encourage both private and government entities to contribute to the development of world-class testing facilities in India.
The key objectives of this call for proposals (CfP) are to develop new infrastructure for testing various components and technologies involved in the production, storage, transportation, and utilization of green hydrogen. This includes upgrading existing facilities, mapping technologies, and disseminating information on the quality and performance of systems and components within the green hydrogen ecosystem. The scheme also supports activities that enhance the testing and quality assurance infrastructure for green hydrogen.
The focus of the scheme is to strengthen testing infrastructure to keep pace with the growing production and use of green hydrogen. The new and upgraded testing centers are expected to bridge gaps in current testing facilities and help India achieve self-sufficiency in testing and certification within the green hydrogen value chain. The scheme supports the development of testing and certification infrastructure and may also fund the creation of centers of excellence on a case-by-case basis. Importantly, the facilities set up or upgraded under this scheme must be accessible to all potential users and cannot be exclusive to any single organization or group.
Proposals can be submitted by government bodies, private organizations, or entities such as joint ventures, public-private companies, and partnerships. The submitting organizations, referred to as ‘Applicants,’ will act as the Executing Agency (EA) if selected. In consortium or partnership proposals, a lead agency must be identified to act as the EA, with designated lead and nodal persons for project execution.
The central financial assistance (CFA) available under this scheme varies by type of applicant. Government entities can receive up to 100% of the capital costs for equipment, installation, and commissioning. Non-government entities are eligible for up to 70% of these costs. Additionally, up to 15% of the total financial support may be allocated for operational expenses over a period of up to four years post-project completion, subject to approval by the Project Appraisal Committee (PAC).
The CFA will be disbursed in stages: 20% upon project selection, 40% when the project reaches 25% completion, 30% when it reaches 75% completion, and the remaining funds upon project completion. The grant must be used exclusively for the allocated project and cannot be redirected for other purposes. Projects to set up new facilities must be completed within 18 months, while upgrades should be finished within 12 months of the first installment release. Extensions of up to six months may be granted with justification, but any additional delay beyond this period requires approval from the Hon’ble Minister of New & Renewable Energy and incurs a penalty.The overall monitoring of the scheme will be overseen by a Steering Committee led by the Secretary of MNRE. The PAC, chaired by the Mission Director of NGHM, will review, evaluate, and recommend projects for funding. The PAC will also monitor the progress of sanctioned projects and recommend further fund disbursements based on project milestones. Entities applying for financial assistance must submit a non-refundable processing fee of ?5,000 to the National Institute of Solar Energy, payable at Gurugram. |
