Tax breaks, grants, corridors: NITI in ‘Harnessing Green Hydrogen’ report
In a bid to spice up inexperienced hydrogen manufacturing within the nation, authorities suppose tank NITI Aayog has really useful tax breaks like discount or exemption of GST and customized duties on inexperienced hydrogen manufacturing. It has additionally proposed establishing inexperienced hydrogen corridors and providing grants to startups engaged on inexperienced hydrogen options domestically.
The Aayog, in its report titled ‘Harnessing Green Hydrogen — Opportunities for Deep Decarbonisation in India’, stated the federal government ought to deal with enabling a value discount pathway for inexperienced hydrogen manufacturing in India. “The current Green Hydrogen policy lays out adequate measures focusing on inter-state transmission (ISTS) charges waiver and open access for green hydrogen and green ammonia production. It can be further improved by reduction or exemption of tax and duties like the GST and custom duties,” the report stated.
Green hydrogen is hydrogen fuel produced by electrolysis of water — an vitality intensive course of for splitting water into hydrogen and oxygen — utilizing renewable energy to attain this.
The Aayog additionally advised there’s a have to facilitate funding by demand aggregation and dollar-based bidding for inexperienced hydrogen. The report predicted that hydrogen demand in India may develop greater than four-fold by 2050, representing virtually 10 per cent of worldwide hydrogen demand. In the long term, metal and heavy-duty trucking are more likely to drive the vast majority of demand development, accounting for nearly 52 per cent of whole demand by 2050, it stated.
The report, launched on Wednesday has been produced in partnership with the Delhi-based suppose tank RMI India.
The NITI Aayog additionally really useful establishing inexperienced hydrogen corridors in participation with states, beginning with three such corridors, and funding startups working within the house. “Three hydrogen corridors to be developed across the country based on state grand challenge…Governments can provide grants and loans to start-ups and projects, support entrepreneurs through incubators and investor networks, and put in place regulations that manage first-mover risks,” the report stated.
In February 2022, the Centre had notified the inexperienced hydrogen and inexperienced ammonia coverage geared toward boosting the home manufacturing of inexperienced hydrogen to five million tonnes by 2030 and making India an export hub for the clear gasoline. It gives 25 years of free energy transmission for any new renewable vitality vegetation set as much as provide energy for inexperienced hydrogen manufacturing earlier than July 2025. The coverage additionally states that vitality vegetation set as much as produce inexperienced hydrogen/ammonia could be given connectivity to the grid on a precedence foundation.
