The Uttar Pradesh government, recently approved a pioneering green hydrogen policy aimed at transitioning from conventional hydrogen production methods to more sustainable green hydrogen production. Announced during a cabinet meeting, the initiative targets the production of one million metric tonnes of green hydrogen per year by 2028. Energy Minister AK Sharma highlighted the policy’s ambitious goals and the government’s commitment to fostering a green economy.
To encourage the establishment of green hydrogen industries, the government has introduced a range of incentives and subsidies worth Rs 5,045 crore for businesses setting up operations within the next five years. These benefits include capital expenditure subsidies ranging from 10% to 40% for the first five industries, along with a 100% rebate on intrastate electricity charges and exemptions on transmission charges for interstate transactions. Additionally, there will be a complete waiver of electricity duty to further support industry growth.
In a related development, the cabinet also sanctioned the construction of two 800 MW power units in Anpara, Sonbhadra district, in collaboration with the National Thermal Power Corporation (NTPC), at an estimated cost of Rs 8,624 crore. This joint venture between the Uttar Pradesh government and NTPC will follow a financial model comprising 30% equity and 70% loan financing. The strategic location near the Northern Coalfields Ltd (NCL) ensures access to coal for cost-effective electricity production. This move follows the signing of two Memorandums of Understanding with NTPC at the 2023 Global Investors Summit, reinforcing Uttar Pradesh’s commitment to sustainable energy solutions.
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