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This is an archive article published on July 4, 2023

Maharashtra introduces Hydrogen policy, a first in the country

The state cabinet also approved Rs 8,562 crore for the implementation of this policy.

Maharashtra, Green Hydrogen Policy, Renewable energy projects, Green hydrogen, Prime Minister Narendra Modi, National Green Hydrogen Mission, Hydrogen demand, IncentivesMumbai: Maharashtra Chief Minister Eknath Shinde arrives to attend the Budget Session of Maharashtra Assembly, in Mumbai, Wednesday, March 8, 2023. (PTI Photo)(PTI03_08_2023_000114B)
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Maharashtra introduces Hydrogen policy, a first in the country
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In order to boost renewable energy projects in the state, the Maharashtra state cabinet on Tuesday gave approval to the state’s Green Hydrogen Policy to promote renewable energy and green hydrogen projects in Maharashtra.

The state cabinet also approved Rs 8,562 crore for the implementation of this policy.

Maharashtra has become the first state of the country to introduce the green hydrogen policy. According to officials, Prime Minister Narendra Modi had announced the National Green Hydrogen Mission, that aimed at producing five million tonnes of green hydrogen annually in the country by 2023. This policy was formulated, recognising the potential of green hydrogen and related products in the state as well.

The official said, the current hydrogen demand of the state is 0.52 million tonnes per annum and may reach 1.5 million tonnes by 2030.

The policy will provide incentives to projects that procure renewable energy through open access, from in-state or out-of-state power distribution companies, power exchanges, for self-consumption. Green hydrogen and related production projects will be registered with the Energy Office.

As per the policy, 50 per cent and 60 per cent concession will be given in transmission charges and wheeling charges respectively for the next ten years from the time of project implementation.

Standalone and hybrid power plants will be given 100 per cent concession in power tariff for the next 10 years and 15 years respectively and will also be exempted from cross subsidy and surcharge.

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“Apart from this, as per the package scheme of incentives 2019, a subsidy of Rs 50 per kg will be given for blending green hydrogen into gas for 5 years. Also, the first 20 green hydrogen refueling stations will be given 30 per cent capital cost subsidy up to a maximum of Rs 4.50 crore. The first 500 green hydrogen based fuel cell passenger vehicles will be given a capital cost subsidy of up to Rs 60 lakh per vehicle, subject to a 30 per cent capital cost subsidy.

Land earmarked for green hydrogen projects will be fully exempted from local body tax, non-agricultural tax and stamp duty.

Rs 4 crore per annum for 10 years for recruitment of skilled manpower, their training, skill development, single window facility etc was also approved by the cabinet in the meeting.

Vallabh Ozarkar is a Senior Correspondent with The Indian Express' Mumbai bureau, recognized as an authoritative and deeply knowledgeable voice on the politics, governance, and infrastructure of Maharashtra. With more than nine years of experience in major news organizations, his reporting delivers high standards of Expertise and Trustworthiness. Expertise & Authority Current Role: Senior Correspondent, The Indian Express, Mumbai bureau. Geographical Specialization: Provides exclusive and detailed coverage of Maharashtra politics and governance, operating at the epicenter of the state's decision-making in Mumbai. Core Authority: His reporting demonstrates deep Expertise across critical and often complex state matters, including: Political Dynamics: In-depth analysis of the ruling coalition (Mahayuti) and opposition (MVA), internal party conflicts, and crucial election updates, including local body polls and municipal corporation tussles. Governance & Policy: Focused coverage on significant state policies, such as the overhaul of Mumbai's 'pagdi system' (rent control for old buildings) and social welfare schemes (e.g., Ladki Bahin Yojana accountability). Infrastructure & Development: Reports on major urban and regional infrastructure projects, including the Mumbai Water Metro, Uttan-Virar Sea Link, and Thane Metro development. Administrative Oversight: Follows legislative actions, cabinet decisions, and reports on issues of accountability and alleged fraud within state departments. Experience Current Role: His role at The Indian Express—a leading national daily—validates the credibility and standard of his reporting. Career Foundation: Prior to The Indian Express, Vallabh contributed to other major metropolitan news outlets, including the Mumbai Mirror and DNA - Daily News & Analysis, providing a solid foundation in rigorous urban and political journalism. Evidence of Impact: His work consistently breaks down complex political developments and administrative failures, such as exposing discrepancies in government welfare schemes, cementing his reputation as a trusted source for ground-level, impactful news from Maharashtra. He tweets @Ozarkarvallabh ... Read More

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