Government enhances allocation for Fertilizer Sector under SIGHT Programme of National Green Hydrogen Mission

The Ministry of New & Renewable Energy (MNRE) enhanced share of allocation for the Fertilizer Sector under the SIGHT Programme of the National Green Hydrogen Mission (NGHM) from 5.5 lakh tonnes per annum to 7.5 lakh tonnes per annum of Green Ammonia.

"In response to the increase in demand for green Ammonia from the fertilizer sector, MNRE has decided to amend the scheme guidelines issued in January this year by increasing allocation under Mode 2A Scheme for the Fertiliser sector by 2 lakh tonnes per annum," the ministry said in a release.

The National Green Hydrogen Mission was launched in January last year with an outlay of Rs. 19,744 crores up to FY 2029-30. The aim of the mission was to make the country Aatmanirbhar (self-reliant) through clean energy and serve as an inspiration for the global Clean Energy Transition.

Under the Mission, the ministry had issued the scheme guidelines for implementation of the Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme to cater for the needs of the fertilizer sector.

SIGHT Programme consists of two distinct financial incentive mechanisms to support the domestic manufacturing of electrolysers and the production of Green Hydrogen.

As per the said guidelines, the capacity available for bidding under Tranche I of Mode 2A was 5,50,000 tonnes per annum of Green Ammonia which has been increased.

The ministry said that the Solar Energy Corporation of India (SECI) also issued a Request for Selection (RfS) for the selection of Green Ammonia Producers through a cost-based competitive bidding process.

The demand for Green Hydrogen and its derivatives from various sectors has witnessed an uptick after the implementation of the mission, the release added.

The NGHM will lead to significant decarbonization of the economy, reduced dependence on fossil fuel imports, and enable India to assume technology and market leadership in Green Hydrogen, the statement read. 

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