Under the green hydrogen policy, UP will provide subsidies and other incentives totalling INR 5,045 crore to industries establishing themselves in the state within the next 5 years; help the state to produce 1 million TPA green hydrogen by 2028.
Mar 18, 2024
The Uttar Pradesh government has approved the green hydrogen policy and the proposal to set up two units of 800 MW in Anpara in collaboration with the National Thermal Power Corporation (NTPC) at a cost of INR 8,624 crore.
A Cabinet meeting chaired by Chief Minister Yogi Adityanath approved the proposal to set the policy, which outlines an ambitious goal to produce one million metric tonnes of green hydrogen annually by 2028.
As per an official release, hydrogen production technology has so far relied on electricity or gas, known as gray hydrogen. A significant effort was now underway to transition from gray hydrogen to green hydrogen. The green hydrogen policy has been set for five years. Industries establishing themselves within this timeframe will receive subsidies and other incentives totalling INR 5,045 crore.
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The industries will be eligible for subsidies ranging from 10 to 30 percent on capital expenditure, with the first five industries enjoying discounts of up to 40 percent, the release quoted UP Energy Minister AK Sharma as saying.
Additionally, the policy includes provisions for energy banking, offering a 100 percent rebate on intrastate electricity charges and billing and transmission charges for interstate transactions. There was also a provision for a 100 percent exemption in electricity duty, he added.
The Cabinet further approved a proposal for setting up two units of 800 MW at Anpara in Sonbhadra district in collaboration with NTPC at a cost of INR 8,624 crore.
This initiative will advance through a 50-50 partnership between the state government and the Central Public Sector Undertaking.
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The financial structure involves 30 per cent equity shared between the state government and NTPC, while the remaining 70 per cent will be financed through loans. The coal mine will be acquired from Northern Coalfields Limited (NCL), which is located nearby, paving way for production of cost-effective electricity, said Mr. Sharma.
Two MoUs were signed with NTPC at the 2023 Global Investors Summit. Of these, the first proposal to set up two 800 MW units in Obra D was approved by the Cabinet last year itself, while the second proposal to establish two 800 MW plants got the nod from the Cabinet now, he added.
