Why in News?
- The first auction under India’s Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme resulted in a record‑low price of ₹55.75 per kilogram for green ammonia.
- This marks a significant milestone in the National Green Hydrogen Mission and signals India’s commitment to clean energy.
What Is the SIGHT Scheme?
- SIGHT is a key financial component of the National Green Hydrogen Mission, jointly implemented by the Ministry of New and Renewable Energy and the Ministry of Petroleum and Natural Gas.
- The programme aims to scale up green hydrogen production, make it cost‑competitive with fossil fuels and create domestic demand in sectors such as fertilisers, shipping and industry.
How It Works
- Under Mode 1, incentives are offered to producers who require the smallest subsidy to supply green hydrogen or its derivatives.
- Under Modes 2A and 2B, demand for green ammonia and green hydrogen is aggregated, and fixed incentives are provided to winning bidders.
- The scheme has an outlay of roughly ₹17,500 crore, with incentives declining over time to encourage early adoption (₹50/kg in year 1, ₹40/kg in year 2 and ₹30/kg in year 3).
- A joint committee monitors implementation and resolves issues.
Highlights of the First Auction
- The lowest winning bid for green ammonia was ₹55.75/kg. Paradeep Phosphates Ltd. secured 75,000 tonnes per annum for ten years.
- This price underlines the competitiveness of green hydrogen derivatives compared to traditional fossil‑based products.
Why It Matters
- Encourages domestic production of green fertilisers, reducing dependence on imports.
- Stimulates long‑term investment in green hydrogen infrastructure and technology.
- Positions India as a future exporter of green ammonia and hydrogen, supporting climate commitments and economic growth.
Conclusion
By driving down prices and providing policy certainty, the SIGHT Scheme paves the way for a greener industrial sector. Continued innovation and supportive regulation will be crucial for India’s transition to a hydrogen‑based economy.
