The announcement signals GoI’s seriousness of intent. It is critical for investments — the target is Rs 8 lakh crore — to flow. The budgetary allocation of Rs 19,744 crore is meant to leverage funds from all sources, including private funds. GoI has ensured that India has the wherewithal to take advantage of the global deployment of hydrogen when it happens at scale. Now, the difficult part: How does India leverage green hydrogen (GH) for its growth and development? The transition to a decarbonised economy presents an economic opportunity for renewal and growth.
Recognition of that opportunity is evident in the US with the Inflation Reduction Act, Japan’s Green Growth Strategy and the EU’s Green Deal and the Fit For 55 package. For the transition to be leveraged for sustained growth, India needs to focus not just on producing GH but on developing and perfecting the technology. Otherwise, the sector is liable to become import dependent.
India’s National Solar Mission provides valuable lessons of the dangers of not developing domestic capacities for research, development, technology and manufacturing. India must avoid making the same mistake with GH. Critical to India ensuring leadership position in the sector is leveraging public and private funds and assets. Taking a leaf from the Covid vaccine development book, GoI must ensure that public and private sector entities work together. R&D in public institutions requires partners from the private sector for accelerating innovation and real-world roll-out and creation of markets. A roadmap with clear milestones will lead to India taking up pole position in this frontline energy space.