Maha Govt Inks MOUs Worth Rs 2.76 lakh Cr For Green Hydrogen Production, To Create 64,000 Jobs

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Amid the Centre’s push for the implementation of the National Hydrogen Mission, the Maharashtra Government on Monday signed MoUs for the seven projects proposing the production of green hydrogen with an investment of Rs 2,76,300 crore. These projects are expected to generate 64,000 jobs in the state. MoUs were signed in the presence of Chief Minister Eknath Shinde, Deputy Chief Minister Devendra Fadnavis, who holds the energy ministry, Principal Secretary of energy department Abha Shukla and other officials.

The companies included NTPC Green Energy, Avada Green Hydrogen, Renew E-Fuels, Inox Air Products, L&T Green Tech, JSW Green Hydrogen and Welspun Godavari GH2. These seven projects will have a total green hydrogen production capacity of 910 kilotonnes per annum (KTPA), leading to an annual reduction of 511 crore kg in carbon emission. This will produce 4,732 KTPA of green ammonia.

Chief Minister Eknath Shinde said that Prime Minister Narendra Modi is focusing on the promotion of green hydrogen, adding that the state government has released the Green Hydrogen Policy 2023 in accordance with the Centre’s guidelines issued for the National Hydrogen Mission.  The government aims to produce 500 KTPA by 2030. The government has proposed a slew of incentives for the developers of green hydrogen.

The Chief Minister said that Maharashtra is an industry-friendly government, and due to the necessary infrastructure and skilled manpower, investments are being made in the state on a large scale. He also said that the aim is to make Maharashtra a leader in the green hydrogen ecosystem.

Maharashtra first state to adopt green hydrogen policy- Deputy Chief Minister Devendra Fadnavis

Deputy Chief Minister Devendra Fadnavis said that Maharashtra is the first state to have an effective policy regarding green hydrogen. ‘’Prime Minister Narendra Modi has set a target of decarbonisation by 2030. Accordingly, progress is being made, and green hydrogen is such a technology that it will be possible to generate energy while maintaining the balance of the environment,’’ he said.

These MoUs were in line with the state’s hydrogen policy announced in July last year, entailing an expenditure of Rs 8,562 crore for its implementation. The policy aims to promote renewable energy and green hydrogen projects in the state. The Chief Minister’s Office, in a release, claimed that Maharashtra is the first state in the country to release such a policy. The state government hopes to mop up a revenue of Rs 18,000 crore in the next 25 years within the policy implementation. The government had hoped to attract an investment of Rs 80,000 crore to R 1 lakh crore with the creation of 55,000 to 65,000 jobs.

The green hydrogen policy has proposed sops to projects that procure renewable energy through open access from in-state or out-of-state power distribution companies and power exchanges for self-consumption. Green hydrogen and related production projects will be registered with the Office of Maha Energy. The project developers will have to deposit 25,000 per MW of electrolyser capacity with the project facility.

For standalone renewable energy projects, the government would provide for ten years 50% concession in transmission and wheeling charges, 60% relief in hybrid renewable energy projects for ten years and 100% exemption in the electricity duty for standalone renewable energy projects for ten years and for hybrid renewable projects for 15%. These projects will also be exempted from cross subsidy and surcharge.

Apart from per the Package Scheme of Incentives 2019, a subsidy of Rs 50 per kg will be given for blending green hydrogen into gas for 5 years. Also, the first 20 green hydrogen refuelling stations will be given a 30 per cent capital cost subsidy up to a maximum of Rs 4.50 crore. The first 500 green hydrogen-based fuel cell passenger vehicles will be given a capital cost subsidy of up to Rs 60 lakh per vehicle, subject to a cap of 30 per cent.

Land earmarked for green hydrogen projects will be fully exempted from local body tax, non-agricultural tax and stamp duty. The cabinet also approved expenses of Rs 40 crore for 10 years (Rs 4 crore per year) for recruitment of skilled manpower, training, skill development and single window facility.

Further, the government will provide 100% relief in transmission and charges for 20 years to the 3 anchor units, which will produce green hydrogen or related products or related renewable projects.

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