Green Hydrogen Policy in the State got Approval from the Cabinet

• 03 Oct 2023

Why In News?

The new green hydrogen policy was approved in the state cabinet meeting held at the Chief Minister's residence on October 1, 2023, under the chairmanship of Chief Minister Ashok Gehlot.

Key Points:

• According to the provisions of this policy, the approval of the Green Hydrogen Project will be issued by the State Level Competent Committee constituted under the chairmanship of the Chief Secretary.
• The major objective of the Green Hydrogen Policy is to produce 2000 KTPA of green hydrogen in the state by the year 2030.
• Apart from this, the policy aims to establish at least one green hydrogen valley to meet the demand of refinery and fertilizer plants. With the establishment of at least one gigawatt electrolyser manufacturing unit, at least 20 percent of India's green hydrogen exports should be supplied from Rajasthan and up to 10 percent of the natural gas produced in the state has green hydrogen blending.
• According to the new green hydrogen policy, land for setting up renewable energy plants for green hydrogen production will be allotted as per the Land Revenue Rules 2007. The land for the hydrogen plant will be allotted by REICO in the industrial area. Apart from this, the plant can also be set up on private land.
• Green hydrogen policy will provide these incentives:
  • In the policy, benefits will be payable according to the Rajasthan Investment and Promotion Scheme. One-third of the availability of water and renewable energy generation will also be provided with banking facilities.
  • The renewable energy plant's capacity for green hydrogen will be allowed up to 2.5 times the contract demand.
  • There will be a discount of 50 percent in broadcast and distribution fees for 10 years on the establishment of the plant.
  • Additional and cross subsidy surcharge on purchase of renewable energy from third parties will be waived for 10 years.
  • Green hydrogen production from brine water or treated water will be given priority in state land allotment.
  • According to the Rajasthan Investment and Promotion Scheme, the benefit will be available for the unit of green hydrogen equipment manufacturing.
  • For setting up a research center, 30 percent of the cost (up to a maximum of Rs 5 crore) will be given.
  • The first 500 KTPA renewable power plant to be installed on RVNL's network will get special incentives (up to a maximum of 50 mw capacity of each plant).