The state cabinet of Maharashtra has granted approval to a green hydrogen policy in an effort to promote renewable energy throughout the state. Maharashtra is the first state in India to announce a policy for generating green hydrogen, which is produced by splitting water through electrolysis.

The cabinet has also allocated Rs 8,562 crore in funds to provide subsidies and benefits to companies that generate this green energy in the coming years.

The objective of the policy is to make Maharashtra a leader in the field of green hydrogen and its derivatives in the country. The state aims to produce 500 kilo tons of green energy per year by 2030. A senior official stated, “This will drive decarbonization across industries, enhance energy security, and also encourage exports of green fuels in the near future.”

This state policy aligns with the National Green Hydrogen Mission, which was approved by Prime Minister Narendra Modi in 2022. The official added, “Currently, the demand for green hydrogen in the state is 500 kilo tons annually. We aim to reach 1.5 million tons of renewable energy in the future.”

The policy also aims to attract investment in the green hydrogen and renewable energy sector, create job opportunities, and develop the state’s economy. It provides various benefits, including exemption from “cross subsidy surcharge” and additional surcharges in power bills for electricity used in the production of green hydrogen. Additionally, there is a 50% exemption from intra-state transmission charges and wheeling charges for a period of 10 years after the commissioning of green hydrogen projects. Furthermore, there is a 100% exemption from electricity duty, among other benefits.

The policy also outlines the availability of three types of government land for lease/rent on a priority basis for such projects. This includes land owned by state government institutions, corporations, public undertakings, and local self-government entities, as well as land owned and occupied by the revenue department. It also includes lands owned or in possession of the central government, central institutions, and public undertakings. The Maharashtra Energy Development Agency will support the identification of land banks for the development of hubs/clusters for green hydrogen production, conversion, storage, transportation, and hydrogen refueling stations within the state.

The benefits under this policy apply to all projects that procure renewable energy.