The government has offered a slew of incentives to attract investments.
In a maiden cabinet meeting after the swearing in of NCP veteran Ajit Pawar as Deputy Chief Minister and 8 ministers, the Maharashtra Green Hydrogen Policy was approved entailing an expenditure of Rs 8,562 crore for its implementation. The policy aims to promote renewable energy and green hydrogen projects in the state. The Chief Minister’s Office in a release claimed that Maharashtra is the first state in the country to release such a policy. The state government hopes to mop up a revenue of Rs 18,000 crore in next 25 years within the policy implementation.The government expects an investment of Rs 80,000 crore to R 1 lakh crore with the creation of 55,000 to 65,000 jobs.
– Maha cabinet approves Rs 8,500 crore for its implementation
– Policy is in line with the Centre’s National Hydrogen mission expects an investment of up to Rs 1 lakh cr and up to 65,000 jobs with the revenue mobilisation of Rs 18,000 cr in 25 years
The National Green Hydrogen Mission aims to produce 5 million tonnes of green hydrogen annually in the country by 2023. Recognizing the potential of green hydrogen and related products in the state as well, this policy has been formulated. The current hydrogen demand of the state is 0.52 million tonnes per annum. This demand may reach 1.5 million tonnes by 2030.
In a bid to attract more and more investments, the policy has proposed a slew of 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 Office of Maha Energy. The project developers will have to deposit 25,000 per MW of electrolyser capacity with the project facility.
For standalone renewable energy projects the government would provide for 10 years 50% concession in transmission and wheeling charges, 60% relief in hybrid renewable energy projects for 10 years and 100% exemption in the electricity duty for standalone renewable energy projects for 10 years and for hybrid renewable projects for 15%. These projects will also be exempted from cross subsidy and surcharge.
Apart, as per Package Scheme of Incentives 2019, 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 percent 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 cap of 30 per cent.
Land earmarked for green hydrogen projects will be fully exempted from local body tax, non-agricultural tax and stamp duty. The cabinet also approved expenses of Rs 40 crore for 10 years (Rs 4 crore per year) for recruitment of skilled manpower, their training, skill development and single window facility.
Further, the government will provide 100% relief in transmission and charges for 20 years to the 3 anchor units which will produce green hydrogen or related products or related renewable projects.
