The PHD Chamber of Commerce and Industry (PHDCCI) has suggested ten recommendations to the Government of India, aimed at expediting the National Green Hydrogen Mission, a groundbreaking initiative with an allocated budget of Rs 19,744 crores.

These PHDCCI recommendations, have been unveiled on the sidelines of 3rd International Climate Summit being held in New Delhi from September 14to 15 at Vigyan Bhavan. The recommendations are significant as they emerge during a crucial moment in India’s concerted efforts to wholeheartedly adopt more environmentally friendly and sustainable energy alternatives.

Launched by Prime Minister Narendra Modi on August 15, 2021, the National Hydrogen Energy Mission aims to make India energy independent and achieve Net Zero emissions by 2070. With an initial outlay of Rs. 19,744 crore allocated for Strategic Interventions, Pilot Projects, and Research & Development, India sees it as a crucial step toward sustainable development and a source of investment opportunities for the youth.

Speaking about the recommendations, PHDCCI President Mr. Saket Dalmia said, “The National Green Hydrogen’s objectives, coupled with these recommendations, hold the promise of not only reducing carbon emissions but also stimulating economic growth and innovation.”

Former President Ram Nath Kovind, who was the chief guest at the 3rd ICS summit, also emphasized on the need to take swift actions to tackle climate change.

“When India took over the presidency of G20 it gave the slogan Vasudhaiva Kutumbakam which means that the world is one family. Our planet is facing unpleasant climatic conditions. We must act collectively and swiftly for this and take mindful and constructive actions,” Kovind said.

Below are the 10 Recommendations by PHDCCI

1. Inclusion in Harmonized List of Infrastructure: Advocate for the recognition of green hydrogen and green ammonia in the Harmonized List of Infrastructure.

2. Zero GST for Green Hydrogen/Ammonia: Propose a zero Goods and Services Tax (GST) rate for green hydrogen and green ammonia to foster growth in the hydrogen ecosystem.

3. Nil Basic Customs Duty for Electrolysers and Equipment: Suggest waiving basic customs duties on imported electrolyzers and related equipment necessary for green hydrogen production, transportation, and storage, extending this benefit until 2030.

4. Extension of Tax Benefits (Section 115BAB): Recommend the extension of tax benefits under Section 115BAB for green hydrogen/green ammonia production and electrolyzer manufacturing until December 31, 2030.

5. Recognition of Green Hydrogen Derivatives: Advocate for the inclusion of green hydrogen derivatives such as methanol and sustainable aviation fuel (SAF) in the list of activities eligible for trading of carbon credits.

6. Amendment in SEZ Rules: Suggest amendments to Special Economic Zone (SEZ) rules to facilitate green hydrogen and green ammonia production, reducing industry costs and enhancing global competitiveness.

7. Relaxation in SEZ Rules for RE Plants: Propose relaxed SEZ rules to support renewable energy plants supplying power to green hydrogen or green ammonia units.

8. Facilitation for Project Development and Exports: Recommend speedy land allocation, relaxed auction processes, payment in annuity installments, and infrastructure development for shared use in green hydrogen projects.

9. Withdrawal of Additional Charges for Power Sale: Encourage the withdrawal of additional charges for selling power from solar projects in specific states, promoting renewable energy project development for green hydrogen production.

10. Capacity Building and Testing Facilities: Suggest the establishment of a Center of Excellence (COE) for hydrogen to provide training and capacity building, along with testing benches for electrolysers and storage tanks, aligning with international standards.