The government has introduced incentives and subsidies worth Rs 5,045 crore for businesses setting up operations within the next five years
With the goal of transitioning to more sustainable green hydrogen production methods, the Uttar Pradesh government has recently approved a groundbreaking green hydrogen policy. It was announced during a cabinet meeting.Â
The policy aims to produce one million metric tonnes of green hydrogen per year by 2028. Energy Minister AK Sharma emphasised the government’s commitment to promoting a green economy through this ambitious initiative.
To attract investment in green hydrogen industries, the government has introduced various incentives and subsidies worth Rs 5,045 crore for businesses setting up operations within the next five years. These include capital expenditure subsidies ranging from 10% to 40% for the first five industries.Â
There will also be a 100% rebate on intrastate electricity charges, exemptions on transmission charges for interstate transactions, and a complete waiver of electricity duty.
The cabinet also approved the construction of two 800 MW power units in Anpara, Sonbhadra district, in collaboration with the National Thermal Power Corporation (NTPC), with an estimated cost of Rs 8,624 crore. This joint venture will follow a financial model of 30% equity and 70% loan financing and is strategically located near the Northern Coalfields Ltd (NCL) for cost-effective electricity production.Â
This development follows two Memorandums of Understanding signed with NTPC at the 2023 Global Investors Summit, further demonstrating Uttar Pradesh’s commitment to sustainable energy solutions.
