PHDCCI’s recommendations for fast-tracking India’s Rs. 19,744 crore Green Hydrogen Mission

PHDCCI’s recommendations for fast-tracking India’s Rs. 19,744 crore Green Hydrogen Mission

We must act collectively and swiftly for this and take mindful and constructive actions

  • By ICN Bureau | September 14, 2023

The PHD Chamber of Commerce and Industry (PHDCCI) has presented ten pivotal recommendations to the Government of India, aimed at expediting the National Green Hydrogen Mission, a groundbreaking initiative with an allocated budget of Rs 19,744 crores.

These PHDCCI recommendations, have been unveiled on the sidelines of the forthcoming 3rd International Climate Summit, slated to occur in New Delhi on September 14 and 15 at Vigyan Bhavan. These recommendations are of paramount importance as they emerge during a pivotal moment in India's concerted efforts to wholeheartedly adopt more environmentally friendly and sustainable energy alternatives.

Launched by Prime Minister Narendra Modi on August 15, 2021, the National Hydrogen Energy Mission aims to make India energy independent and achieve Net Zero emissions by 2070. With an initial outlay of Rs. 19,744 crore allocated for Strategic Interventions, Pilot Projects, and Research & Development, Prime Minister Narendra Modi sees it as a crucial step toward sustainable development and a source of investment opportunities for the youth.

10 Recommendations by PHDCCI:

1. Inclusion in Harmonized List of Infrastructure: Advocate for the recognition of green hydrogen and green ammonia in the Harmonized List of Infrastructure.

2. Zero GST for Green Hydrogen/Ammonia: Propose a zero Goods and Services Tax (GST) rate for green hydrogen and green ammonia to foster growth in the hydrogen ecosystem.

3. Nil Basic Customs Duty for Electrolysers and Equipment: Suggest waiving basic customs duties on imported electrolyzers and related equipment necessary for green hydrogen production, transportation, and storage, extending this benefit until 2030.

4. Extension of Tax Benefits (Section 115BAB): Recommend the extension of tax benefits under Section 115BAB for green hydrogen/green ammonia production and electrolyzer manufacturing until December 31, 2030.

5. Recognition of Green Hydrogen Derivatives: Advocate for the inclusion of green hydrogen derivatives such as methanol and sustainable aviation fuel (SAF) in the list of activities eligible for trading of carbon credits.

6. Amendment in SEZ Rules: Suggest amendments to Special Economic Zone (SEZ) rules to facilitate green hydrogen and green ammonia production, reducing industry costs and enhancing global competitiveness.

7. Relaxation in SEZ Rules for RE Plants: Propose relaxed SEZ rules to support renewable energy plants supplying power to green hydrogen or green ammonia units.

8. Facilitation for Project Development and Exports: Recommend speedy land allocation, relaxed auction processes, payment in annuity installments, and infrastructure development for shared use in green hydrogen projects.

9. Withdrawal of Additional Charges for Power Sale: Encourage the withdrawal of additional charges for selling power from solar projects in specific states, promoting renewable energy project development for green hydrogen production.

10. Capacity Building and Testing Facilities: Suggest the establishment of a Center of Excellence (COE) for hydrogen to provide training and capacity building, along with testing benches for electrolysers and storage tanks, aligning with international standards.

"When India took over the presidency of G20, it gave the slogan Vasudhaiva Kutumbakam which means that the world is one family. Our planet is facing unpleasant climatic condition. We must act collectively and swiftly for this and take mindful and constructive actions," said Ram Nath Kovind, Former President of India

"As we advocate for the acceleration of India's National Green Hydrogen Mission, we recognize the critical role it plays in shaping our nation's energy future. The 10 vital recommendations put forth by PHDCCI align with our commitment to advancing sustainable and eco-friendly energy solutions. The National Green Hydrogen’s objectives, coupled with these recommendations, hold the promise of not only reducing carbon emissions but also stimulating economic growth and innovation. PHDCCI remains dedicated to collaborating with the government, industry stakeholders, and civil society to usher in a green hydrogen revolution that will define our energy landscape for generations to come,” said PHDCCI President Saket Dalmia.

"As we embark on India's National Green Hydrogen Mission, it's imperative to emphasize strategic interventions and the development of Green Hydrogen Hubs. The Strategic Interventions for Green Hydrogen Transition Programme (SIGHT) is a significant step, as it not only supports domestic manufacturing of Electrolysers but also facilitates the production of green hydrogen right here in our nation. Additionally, the identification and development of Green Hydrogen Hubs in states and regions with the capacity for large-scale hydrogen production and utilization are pivotal for our mission's success. These initiatives will not only drive the growth of the green hydrogen sector but also position India as a global leader in sustainable energy solutions, contributing to a greener and more self-reliant future,” said Dr. Jeewan Prakash Gupta, Chair of the Environment and Climate Change Committee at PHDCCI.

"This is a very important step in combating climate change and Greenstat is very happy to contribute and share their expertise and experience. It is important for India to collaborate internationally to implement the necessary knowledge in an efficient manner." said Sturle H. Pedersen, Chairman of Greenstat Hydrogen India. 

Nobuo Tanaka, Chair, the Steering Committee of Innovation for Cool Earth Forum (ICEF), Executive Director Emeritus, International Energy Agency (IEA), CEO, Tanaka Global, Inc. Tokyo, Japan highlights that we are under the global climate and energy crisis, and all countries need to focus on energy security. And green hydrogen are key technologies for climate change mitigation.

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