Uttar Pradesh Approves Green Hydrogen Policy and 800 MW Units
In a significant move towards sustainable energy, the Uttar Pradesh government, under the leadership of Chief Minister Yogi Adityanath, has given the green light to a groundbreaking green hydrogen policy. This policy, approved during a Cabinet meeting, outlines an ambitious target to produce one million metric tonnes of green hydrogen annually by 2028, shifting away from conventional gray hydrogen production that relies on electricity or gas.
The green hydrogen policy, spanning five years, offers a slew of incentives to industries establishing themselves within this timeframe. Subsidies and incentives totaling Rs 5,045 crore will be provided, with discounts ranging from 10 to 30 percent on capital expenditure. The first five industries will enjoy even more substantial benefits, with discounts of up to 40 percent. Energy Minister AK Sharma highlighted additional perks, such as energy banking, a 100 percent rebate on intrastate electricity charges, and exemptions in electricity duty.
Furthermore, the Cabinet approved a proposal for the establishment of two 800 MW units in Anpara, Sonbhadra district, in collaboration with NTPC at a cost of Rs 8,624 crore. This initiative, a 50-50 partnership between the state government and NTPC, aims to utilize nearby coal mines from Northern Coalfields Ltd (NCL) to produce cost-effective electricity.
The financial structure of the project involves a 30 percent equity shared between the state government and NTPC, with the remaining 70 percent financed through loans. Notably, two Memorandums of Understanding (MoUs) were signed with NTPC during the 2023 Global Investors Summit, with the first proposal to set up two 800 MW units in Obra D gaining Cabinet approval last year. The recent approval for two 800 MW plants in Anpara further emphasizes Uttar Pradesh's commitment to advancing sustainable and cost-effective energy solutions.
