In a major push toward sustainability and clean energy, the Government of Uttar Pradesh has unveiled the Green Hydrogen Policy 2024. This landmark initiative aims to transform the state into a green hydrogen hub, contributing significantly to India’s Net Zero target and climate goals.
The policy, valid for the next five years, provides a robust framework to promote the production, storage, transport, and consumption of green hydrogen and green ammonia. From massive financial incentives to infrastructure support, the policy is designed to encourage investors, innovators, and industries to make the green switch.
Vision and Key Goals
The policy envisions Uttar Pradesh as a leader in green hydrogen production, targeting a capacity of 1 million metric tonnes per annum by 2029. It aligns closely with the National Green Hydrogen Mission 2023, aiming to:
- Create a complete green hydrogen/ammonia ecosystem
- Reduce production costs through innovation and R&D
- Promote employment generation (~1.2 lakh jobs expected)
- Encourage market demand and industrial clusters
Investment Incentives
To attract both domestic and global investors, the policy offers three flexible incentive models:
1. Capital Subsidy
- Up to 30% of capital investment in 20 annual instalments
- Higher subsidy rates in Bundelkhand & Purvanchal
- Special boosters:
- Employment Booster (up to 4%)
- Export Booster (up to 4%)
- Ecosystem Booster (up to 4%)
2. Net SGST Reimbursement
- 100% Net SGST refund for up to 16 years
- Maximum reimbursement up to 300% of capital investment in select regions
3. PLI Scheme Top-up
- 30% additional incentive on PLI benefits from the Government of India
- Capped at 100% of eligible capital investment
Land & Water Benefits
- Lease land for ₹1/year (Govt) or ₹15,000/year (private) per acre
- 100% stamp duty exemption
- Easy land-use permissions and deemed approvals
- Water access from nearest sources, with infra cost borne by developers
Operational Incentives
- 100% waiver on wheeling, transmission, and cross-subsidy charges
- Energy banking permitted for 25 years
- 100% electricity duty exemption for 10 years
- Open access & captive use allowed
- Power consumed will count toward RPO compliance
R&D and Startup Boost
- Two Centres of Excellence (CoE) with ₹50 crore funding each
- Startups get ₹25 lakh/year for 5 years
- Up to 3 incubators supported for mentoring and innovation events
Governance & Ease of Business
The policy will be spearheaded by UPNEDA as the nodal agency, supported by high-level empowered committees at the state and district levels for fast-tracked approvals, land identification, and infrastructure development.
A Single Window Clearance system has been established to make business setup smoother and investor-friendly.
Environmental Fast-Tracking
- Projects categorized under ‘White’ category for quick environmental clearance
- No Pollution Board NOC required for setup and operation
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