Govt targeting 5 MT of green hydrogen production by 2030: Budget 2023

New Delhi: The government is targeting 5 million tonnes (MT) of green hydrogen production by 2030, Finance Minister Nirmala Sitharaman announced on Wednesday in her Budget speech.

She also said that the Budget provides for Rs 35,000 crore for priority capital investment towards energy transition and net zero objectives.

The government would support setting up of battery energy storage of 4,000 MwH, she said, adding green credit programme will be also notified under the Environment Protection Act.

With a vision to make India an energy-independent nation and to de-carbonise critical sectors, the government approved the National Green Hydrogen Mission on January 4, 2023, with an initial outlay of Rs 19,744 crore.

The mission will facilitate demand creation, production, utilisation and export of green hydrogen, and mobilisation of over Rs 8 lakh crore of investments by 2030.

The economic survey tabled in Parliament on Tuesday stated that from the emerging global momentum on green hydrogen, India can situate this decarbonisation opportunity not just within the context of a low-carbon economy but also as an enabler of energy security and economic development for the nation. The minister further said that the government would spend Rs 10,000 crore per year on urban infrastructure development funds.

This would be along the lines of the Rural Infrastructure Development Fund; to be managed by NHB (National Housing Bank).