Green Hydrogen Policy

Indias new green hydrogen policy was unveiled, promising cheaper , a 25-year fee waiver for inter-state power transmission for projects completed before June 2025, land in renewable energy parks, and mega manufacturing zones to help local industries move away from fossil fuels.

The policy aims to boost green hydrogen and ammonia, also making it easier for green power producers to bank their surplus renewable energy with an electrical distribution business for up to 30 days. It also proposes the construction of bunkers near Ports for the storage of green ammonia for export.

The race for green energy takes is very important as the ongoing Russia-Ukraine crisis has pushed up energy prices around the world, particularly in India, which imports 85 percent of its oil and 53 percent of its natural gas. A transformation to large-scale hydrogen fuel use could assist Indias geopolitical influence as well as its Energy Security. Indias strategy is to use its vast landmass and low solar and wind tariffs to manufacture low-cost green hydrogen and ammonia for export.

World Banks lending arm, theInternational Bank for Reconstruction and Development (IBRD)will provide financial support of USD 115 million to this project. The loan has a 15 years maturity period with 4.5 years grace period.

Karnataka will receive USD 60 million, Odisha will receive USD 49 million while the remaining USD 6 million will be utilized by the Indian governments Department of Land Resources.

To improve water and land conservations as well as preventing run-off, harvesting rainwater, regenerating natural vegetation, and replenishing the groundwater table.

The project also aims to improve the capacities of the state and the central institutions so that they can develop and deliver better Watershed Management and development programs.

The World Bank, the Government of India, the State Governments of Karnataka, and Odisha, have signed a USD 115 million deal for theRejuvenating Watersheds for Agricultural Resilience through Innovative Development Programmeto help national and state governments adopt improved watershed management practices to help farmers become more resilient to climate change, improve incomes, and promote higher productivity.

Rejuvenating Watersheds for Agricultural Resilience through Innovative Development (REWARD) is a project which is being implemented in three-four Indian states. It is planned as a six-year project and is one of the largest water management programs around the world.