India’s Finance Minister Nirmala Sitharaman stated in her Budget address that the government plans to produce 5 million tonnes (MT) of green hydrogen by 2030.
She added that the budget allocates Rs 35,000 crore for high-priority capital investments related to net zero and energy transition goals. According to her, the government will fund the installation of 4,000 MwH of battery energy storage, and a green credit program would also be announced in accordance with the Environmental Protection Act.
The National Green Hydrogen Mission was approved by the government on January 4, 2023, with an initial investment of Rs 19,744 crore. The mission’s goals are to make India an energy-independent nation and to decarbonize key industries.
By 2030, the mission will support the development of green hydrogen demand, its production, use, and export, as well as the mobilization of more than Rs 8 lakh crore in capital.
According to the economic survey submitted to Parliament, India can position this decarbonization potential not just within the context of a low-carbon economy but also as a facilitator of energy security and economic development for the country.
The minister added that the government would allocate Rs 10,000 crore annually for funds to construct urban infrastructure. Similar to the Rural Infrastructure Development Fund, this would be handled by NHB (National Housing Bank).