India is becoming serious about green hydrogen. On April 27, 2025, a full funding plan under the National Green Hydrogen Mission was laid out with the vision to make India a global leader in this green fuel. With billions of assistance, the plan addresses production, electrolyser manufacturing, and pilot projects. Here’s what it’s shaping up to be and why it matters.
A Massive Funding Plan
The National Green Hydrogen Mission has big bucks to spend.V It’s set to provide Rs 12,500 crore for green hydrogen production by 2030. Another Rs 2,250 crore will boost electrolyser manufacturing, while Rs 1,500 crore funds pilot projects in steel, shipping, and mobility. “India plans to offer viability gap funding (VGF) of up to 40% for green hydrogen production,” the report stated. This financial support aims to make green hydrogen affordable and scalable.
Why Green Hydrogen?
Green hydrogen is made using renewable energy to split water, producing zero emissions. It’s key for decarbonizing hard-to-clean sectors like steel and shipping. India’s mission targets 5 million tonnes of green hydrogen production by 2030. “To make India the Global Hub for production, usage and export of Green Hydrogen,” the MNRE mission states. This could cut fossil fuel imports and boost energy security.
Key Highlights
- Production Funding: Rs 12,500 crore for green hydrogen by 2030.
- Electrolyser Support: Rs 2,250 crore to scale manufacturing.
- Pilot Projects: Rs 1,500 crore for steel, shipping, and mobility.
- VGF Support: Up to 40% funding to bridge cost gaps.
Challenges in the Way
Green hydrogen isn’t cheap yet. Production costs are high, and tech needs to improve. An IEEFA report notes that the mission’s five-year tenure and low subsidies might deter long-term investment. Infrastructure—like pipelines and storage—is also lacking. But the funding plan helps. It lowers financial risks for companies, encouraging them to jump in.
The Bigger Picture
India’s green hydrogen push is part of a broader clean energy shift. The country has 220.10 GW of installed renewable capacity as of March 2025, per MNRE data. Green hydrogen builds on this, targeting industries that renewables alone can’t decarbonize. A 2024 IEA report says global hydrogen demand could hit 150 million tonnes by 2030, with green hydrogen leading the charge. India’s Rs 12,500 crore for production positions it to grab a big share.
Early Progress
Companies are already moving. Reliance Industries plans to produce 100,000 tonnes of green hydrogen annually starting in 2025, per a Business Standard report. Pilot projects in shipping and mobility, backed by Rs 1,500 crore, are testing real-world applications. The mission also ensures quality—projects must use government-approved equipment, as noted by mnre.gov.in.
India’s green hydrogen funding plan is a bold step. With Rs 12,500 crore for production and more for electrolysers and pilots, the country is building a clean energy future. It’s a long road, but this support could make India a global leader in green hydrogen.
