India | Union Cabinet Approves ₹19,744 Cr Green Hydrogen PLI Scheme

The Union Cabinet, chaired by Prime Minister Narendra Modi, today approved a new Production-Linked Incentive (PLI) scheme aimed at boosting domestic manufacturing of green hydrogen and electrolysers. With an outlay of ₹19,744 crore (approximately $2.3 billion), this initiative seeks to establish India as a global hub for green hydrogen production and export by 2030.

Scheme Details

The newly approved Production-Linked Incentive (PLI) scheme is a government initiative designed to boost domestic manufacturing by offering incentives on increased sales. This particular scheme will target the nascent green hydrogen and electrolyser sectors. Green hydrogen is produced through the electrolysis of water using renewable energy sources, making it a critical component in the global transition towards sustainable energy. The scheme’s substantial outlay of ₹19,744 crore is intended to provide a significant push to manufacturing capabilities within India, according to government officials. The Ministry of New and Renewable Energy is expected to play a key role in overseeing the implementation of this scheme.

Government's Rationale

The primary objective behind the scheme is to enhance India's self-reliance in green energy technologies and reduce the country's dependence on fossil fuels. Government officials stated that the initiative is strategically designed to position India as a leading producer and exporter of green hydrogen globally. By incentivizing domestic manufacturing, the Union Cabinet aims to foster a robust ecosystem for green hydrogen production, which is anticipated to create job opportunities and drive technological advancement in the sector.

Implementation and Vision

This approval is part of India's broader national strategy to accelerate its clean energy transition and meet its climate commitments. The vision articulated by the Union Cabinet is to transform India into a global hub for both green hydrogen production and its subsequent export by the year 2030. While specific details regarding the phases of implementation and incentive disbursement criteria were not immediately available, they are expected to be released by the relevant ministries.

Background

The introduction of this scheme aligns with India's ongoing efforts to strengthen its economic infrastructure and promote green growth initiatives. The nation has placed a strong emphasis on clean energy as part of its commitments to reduce carbon emissions and work towards energy independence. The Production-Linked Incentive framework has previously been utilized across various sectors to boost domestic manufacturing and reduce import reliance, establishing it as a proven mechanism for driving industrial growth.

Key Takeaways

• The Union Cabinet, chaired by Prime Minister Narendra Modi, today approved a new Production-Linked Incentive (PLI) scheme.
• The scheme targets boosting domestic manufacturing of green hydrogen and electrolysers with an outlay of ₹19,744 crore.
• This initiative is part of India's strategy to become a global hub for green hydrogen production and export by 2030.
• The Ministry of New and Renewable Energy is expected to oversee the scheme's implementation.

People Also Ask

• What is the purpose of the new PLI scheme approved by the Union Cabinet?

  The new Production-Linked Incentive (PLI) scheme aims to boost domestic manufacturing of green hydrogen and electrolysers in India. It seeks to reduce reliance on fossil fuels and position India as a leader in green energy production and export.

• What is the total financial outlay for this green hydrogen initiative?

  The Union Cabinet approved an outlay of ₹19,744 crore (approximately $2.3 billion) for the Production-Linked Incentive scheme. This substantial investment is intended to accelerate the growth and development of the green hydrogen sector.

• What is India's long-term vision for green hydrogen production?

  India's long-term vision, as articulated by the Union Cabinet, is to establish the country as a global hub for green hydrogen production and export by the year 2030. This aligns with the nation's broader clean energy goals.

• Who chaired the Union Cabinet meeting that approved the scheme?

  The Union Cabinet meeting that approved the new Production-Linked Incentive scheme for green hydrogen and electrolysers was chaired by Prime Minister Narendra Modi.

Last updated: March 27, 2026