India’s green hydrogen ecosystem has achieved a critical milestone with the establishment of 1,100 MW (1.1 GW) of domestic electrolyser manufacturing capacity, announced Union Minister for New and Renewable Energy, Pralhad Joshi. This significant progress underscores the country's concerted push to build a robust supply chain for its ambitious National Green Hydrogen Mission (NGHM).

Speaking at the World Hydrogen India Summit, Minister Joshi reaffirmed the nation's target to produce 5 million metric tonnes (MMT) of green hydrogen annually by 2030, a goal that will be underpinned by an addition of 125 GW of dedicated renewable energy capacity. To accelerate project development and attract investment, the minister detailed a suite of key policy measures designed to improve the ease of doing business.

“The government has launched a national single-vendor portal to streamline clearances,” Joshi stated. In a major incentive to enhance project economics, he confirmed a waiver of interstate transmission (ISTS) charges for green hydrogen and green ammonia projects commissioned before January 2030. Furthermore, such projects have been exempted from the mandatory requirement of environmental clearance, significantly reducing the timeline from conception to commissioning.

These strategic interventions are already yielding results. The installed electrolyser capacity, a core component for splitting water into hydrogen and oxygen using renewable electricity, represents a substantial portion of the government's target to support 3,000 MW of annual manufacturing under the SIGHT programme. This rapid indigenisation is crucial for reducing costs and securing the supply chain for the burgeoning sector.

For engineering and technology leaders like Larsen & Toubro (L&T), which is actively involved in the electrolyser manufacturing space through strategic partnerships, these developments are highly significant. The combination of a growing domestic manufacturing base and streamlined regulatory approvals de-risks large-scale project execution. The waiver of ISTS charges, in particular, makes the cost of round-the-clock renewable energy for hydrogen production more competitive, directly enhancing the viability of the end product. This multi-pronged approach demonstrates a clear government commitment to transforming India into a global hub for green hydrogen production, utilisation, and export.

This proactive policy framework is designed to de-risk investments and position India as a highly competitive destination for global capital in the green hydrogen sector. The waiver of interstate transmission charges alone is projected to significantly lower the levellised cost of hydrogen production, by reducing the expense associated with wheeling renewable power from generation sites to electrolyser facilities. This makes projects located in renewable energy-rich states like Gujarat, Rajasthan, and Tamil Nadu particularly attractive.

The establishment of 1.1 GW of electrolyser capacity also signals a rapid scaling of the domestic manufacturing ecosystem. This indigenisation is critical not only for meeting internal demand but also for creating a potential export market for electrolysis technology. The government's focus on simplifying the approval process through a single-window system further addresses a key concern for developers, ensuring that projects can move from the drawing board to implementation without unnecessary delay

Source: 

https://www.outlookbusiness.com/planet/india-installs-11-gw-electrolyzer-capacity-fast-tracks-green-hydrogen-push-mnre-minister