The Ministry of New and Renewable Energy (MNRE) has issued guidelines for disbursing incentives for the production of up to 450,000 metric tonnes (MT) per year of green hydrogen under Component II (Mode 1, Tranche II) of the Strategic Interventions for Green Hydrogen Transition (SIGHT) programme. The Solar Energy Corporation of India (SECI) will oversee the competitive bidding process and manage the programme’s implementation.

Green hydrogen producers will receive incentives over three years, with caps set at Rs 50 per kg in the first year, Rs 40 per kg in the second year, and Rs 30 per kg in the third year. For products derived from green hydrogen, such as green ammonia, incentives will be based on the amount of green hydrogen used in their production, with an equivalence factor of 0.1765 kg of green hydrogen per kg of green ammonia determined by MNRE.

The programme’s auctions will be divided into two categories: 
– Bucket I for technology-agnostic pathways with a capacity of 410,000 MT per year.
– Bucket II for biomass-based pathways with a capacity of 40,000 MT per year.

A single bidder can be awarded a maximum capacity of 90,000 MT per year in Bucket I, with a minimum capacity requirement of 10,000 MT. In Bucket II, the maximum capacity is 4,000 MT per year, with a minimum capacity of 500 MT per year. Bidders are eligible to submit bids for either or both buckets.

MNRE Notification can be accessed here