MNRE Notifies Guidelines for Tranche-II of Green Hydrogen Production Incentive Scheme

The bidding process will be based on the least average incentive quoted by the bidder. For bucket-I, the minimum bid capacity is set at 10,000 TPA and the maximum at 90,000 TPA.

The Ministry of New and Renewable Energy (MNRE) has announced the 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.

Tranche-II aims for a production capacity of 450,000 tons per annum (TPA) of Green Hydrogen. This includes 40,000 TPA reserved for biomass-based pathways (bucket-II) and the remaining capacity for technology-agnostic pathways (bucket-I). The Solar Energy Corporation of India (SECI) will once again serve as the implementing agency for this tranche, with the Request for Selection (RfS) to be issued by SECI shortly.

The bidding process will be based on the least average incentive quoted by the bidder. For bucket-I, the minimum bid capacity is set at 10,000 TPA and the maximum at 90,000 TPA. In bucket-II, the minimum bid capacity is 500 TPA, and the maximum is 4,000 TPA. Bidders have the option to participate in either or both buckets, with the maximum capacity that a single bidder can be allotted being 90,000 TPA.

The National Green Hydrogen Mission, launched on 4th January 2023, with an outlay of Rs. 19,744 crores up to FY 2029-30, is a significant step towards India's goal of becoming Aatma Nirbhar (self-reliant) through clean energy. This mission aims to contribute to the global Clean Energy Transition by driving significant decarbonization of the economy, reducing dependence on fossil fuel imports, and positioning India as a leader in Green Hydrogen technology and markets.