The Ministry of New and Renewable Energy, Government of India (MNRE) had launched National Green Hydrogen Mission (Mission) in January 2023. To take the objective of the Mission forward, the MNRE on February 14, 2024, notified the guidelines for implementation of pilot projects for use of green hydrogen in the transport sector (Scheme) with a budgetary outlay of INR 496 crores till FY 2025-2026.
The objective of the Scheme is to, inter alia, support the deployment of green hydrogen as fuel in buses and trucks, evaluate their economic viability and performance as well as demonstrate safe operations of hydrogen fueling stations.
■ Financial Assistance and Disbursement:
Under the Scheme, the financial support will be provided in the following areas:
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- Commercially viable technologies that will be developed for: (a) use of green hydrogen as fuel in certain specific categories of buses and trucks; and (b) supporting infrastructure such as hydrogen fueling stations sector; and
- Innovative use of green hydrogen in the transport sector, such as blending of methanol/ethanol derived from green hydrogen in automobile fuels.
Under the Scheme, financial assistance will be provided to reduce the viability gap due to the relatively higher capital costs of the hydrogen fuel vehicles and necessary infrastructure, including the refueling facilities and distribution infrastructure. The funding will be granted depending on the feasibility, specific needs and merits of each of the projects. However, the Scheme does not envisage financial support for expenses on account of hydrogen production, land etc.
■ Monitoring Framework:
The overall responsibility of monitoring and implementing the Scheme will be with the steering committee (SC), set up under the co-chairpersonship of Secretary, the Ministry of Road Transport and Highways (MoRTH) and Secretary, MNRE. In case of any ambiguity in the provisions of the Scheme, the SC will provide its recommendations to resolve the issues, however, the decision of MNRE is final.
■ Project Timelines:
The request for proposals will specify the timelines for completion of the pilot projects and in case of delay in completion of the project, they will provide for extension of up to six months, with the approval of the SC and without imposition of any penalty. However, in case of any delay in completion beyond a period of six months, the extension can only be granted after the approval from the MNRE and suitable penalties will be imposed as provided in the proposal document.
Further, the financial assistance should be utilized by the executing agency strictly for the purpose for which it is sanctioned. In case the granted funds are utilized for other purposes or upon failure to complete the pilot project, the executing agency is obligated to refund the grant to the MNRE along with the applicable interest under the General Financial Rules, 2017. Inordinate delays in completion of the project also entitles the MNRE to retract the sanctioned funds or cancel the project in consultation with the SC.