NEW DELHI — India will launch the National Green Hydrogen Mission (NGHM) for which a budget of 197.44 billion Indian rupees (2.38 billion U.S. dollars) has been allocated, the government said on Wednesday.

The mission will facilitate demand creation, production, utilization and export of green hydrogen. It encompasses the Strategic Interventions for Green Hydrogen Transition Program (SIGHT), for which 174.90 billion Indian rupees (2.11 billion U.S. dollars) has been earmarked out of the total outlay.

The NGHM was approved at a meeting of the cabinet of ministers chaired by Prime Minister Narendra Modi.

It will lead to the development of green hydrogen production capacity of at least 5 MMT (million metric tons) per annum with an associated renewable energy capacity addition of about 125 GW in the country, creation of over 600,000 jobs, cumulative reduction in fossil fuel imports of over 1 trillion Indian rupees (12 billion U.S. dollars), and abatement of nearly 50 MMT of annual greenhouse gas emissions, said a statement issued by the government.

It added that the mission will have wide ranging benefits, like creation of export opportunities for green hydrogen and its derivatives, decarbonization of industrial, mobility and energy sectors, reduction in dependence on imported fossil fuels and feedstock, development of indigenous manufacturing capabilities, creation of employment opportunities, and development of cutting-edge technologies.

Under the SIGHT program, two distinct financial incentive mechanisms targeting domestic manufacturing of electrolysers and production of green hydrogen will be provided.

The mission will also support pilot projects in emerging end-use sectors and production pathways. Regions capable of supporting large scale production or utilization of hydrogen will be identified and developed as green hydrogen hubs. (Xinhua)