As the green energy movement gets momentum, the Gujarat government intends to implement a special policy to encourage green hydrogen generation and products.
According to sources close to the development, the proposed policy, which aims to incentivize the sunrise sectors, will almost certainly be announced ahead of the Vibrant Gujarat Global Summit (VGGS) next month in Gandhinagar.
“Gujarat plans to offer financial subsidies or viability gap funding (VGF) for companies investing in green hydrogen, which is being touted as the future of energy,” a government official aware of the development said.
When contacted, Kanubhai Desai, the state finance and education minister, confirmed the plans to implement a new green hydrogen energy policy. “Globally, green hydrogen energy generation is viewed as the solution to climate change mitigation,” he said.
On August 15, Prime Minister Narendra Modi delivered his latest Independence Day speech, emphasising the importance of India’s transition to a hydrogen-based economy and announcing the launch of the National Hydrogen Mission. As a result, many businesses have begun to make the switch.
Reliance Industries Ltd, Adani Group, L&T, NTPC, GAIL, and IOC are among the companies that have begun work in this direction.
The government intends to provide significant financial incentives for R&D as well as human resource incentives. A budgetary allocation for the sector is also planned by the government.