MNRE Notifies Guidelines for Second Tranche of Green Hydrogen Production Incentive Scheme under SIGHT Programme

New Delhi: The Ministry of New and Renewable Energy (MNRE) has officially notified the Scheme Guidelines for the implementation of the “Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme – Component II: Incentive Scheme for Green Hydrogen Production (under Mode 1)- Tranche-II” on 3rd July 2024. This tranche aims to boost India’s green hydrogen production capacity significantly.

The capacity for Tranche-II is set at 450,000 Metric Tonnes Per Annum (TPA) of Green Hydrogen. Of this, 40,000 TPA is reserved for biomass-based pathways (bucket-II), while the remaining capacity will be allocated for technology-agnostic pathways (bucket-I). The Solar Energy Corporation of India (SECI) will continue to act as the implementing agency for this tranche, with the Request for Selection (RfS) expected to be issued shortly.

Bidding for the capacity allocation will be based on the least average incentive quoted by the bidders. The minimum bid capacity for bucket-I is 10,000 TPA, with a maximum bid limit of 90,000 TPA. For bucket-II, the minimum bid capacity is 500 TPA, with a maximum of 4,000 TPA. Bidders have the flexibility to submit bids for any or both buckets, with the maximum capacity that a single bidder can be allotted in this tranche set at 90,000 TPA.

The National Green Hydrogen Mission, launched on 4th January 2023, has a total outlay of Rs. 19,744 crores up to FY 2029-30. This mission is a pivotal step towards achieving India’s goal of becoming Aatma Nirbhar (self-reliant) through clean energy, positioning India as a leader in the global Clean Energy Transition. The mission aims to significantly decarbonize the economy, reduce dependence on fossil fuel imports, and establish India’s leadership in green hydrogen technology and market.