India is working on offering viability gap funding for an electrolyzer manufacturing capacity of around 3,000 MW annually to enhance green hydrogen production in the country, Parliament was told on Tuesday. This holds importance since India initiated the National Green Hydrogen Mission with a starting budget of Rs 19,744 crore in January 2023.

The Mission seeks to establish a green hydrogen production capability of no less than 5 MMT (Million Metric Tonne) annually, along with a renewable energy capacity increase of roughly 125 GW in the country.

The Mission also seeks to draw in more than Rs 8 lakh crore in overall investments and generate over six lakh jobs, while decreasing fossil fuel imports by over Rs 1 lakh crore and cutting nearly 50 MMT of yearly greenhouse gas emissions.

"According to Minister of State for New & Renewable Energy Shripad Yesso Naik, contracts for Electrolyser Manufacturing have been awarded or are in progress for an annual capacity of 3,000 MW," he stated in a written response to the Rajya Sabha.

He additionally mentioned that for the production of Green hydrogen, a capacity has been allocated of 4,12,000 tons annually.

Within the Strategic Interventions for Green Hydrogen Transition Programme (SIGHT), the Mission offers two separate financial incentive mechanisms aimed at raising the domestic production of electrolyzers and the generation of Green Hydrogen.

Areas that can sustain extensive production and use of Hydrogen will be recognized and established as Green Hydrogen Hubs as part of the Mission.