Government enhances allocation for Fertilizer Sector under SIGHT Programme

As per the said Guidelines, the capacity available for bidding under Tranche I of Mode 2A was 5,50,000 tonnes per annum of Green Ammonia.

Government enhances allocation for Fertilizer Sector under SIGHT Programme

Ministry of New & Renewable Energy is implementing the National Green Hydrogen Mission (NGHM) with a target to achieve a production capacity of 5 million tonnes per annum of Green Hydrogen in the country by the year 2030.

The Ministry of New and Renewable Energy (MNRE) has issued the Scheme Guidelines for implementing the SIGHT Programme – Component II. This includes an Incentive for Procurement of Green Ammonia Production (under Mode 2A) of the NGHM on 16.01.2024. Mode 2A is designed to cater to the requirements of the fertilizer sector.

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As per the said Guidelines, the capacity available for bidding under Tranche I of Mode 2A was 5,50,000 tonnes per annum of Green Ammonia. Thereafter, Solar Energy Corporation of India (SECI) also issued a Request for Selection (RfS) for selection of Green Ammonia Producers through a cost-based competitive bidding process.

As the implementation of the Mission is gaining traction, the demand for Green Hydrogen and its derivatives from various sectors is also increasing.

In response to the increase in demand for Green Ammonia from the fertilizer sector, MNRE has decided to amend the Scheme Guidelines dated 16.01.2024 by increasing allocation under Mode 2A Scheme for the Fertiliser sector by 2 lakh tonnes per annum i.e. the existing allocation of 5,50,000 tonnes per annum of Green Ammonia has been increased to 7,50,000 tonnes per annum. This is a significant step towards demand creation of Green Hydrogen and its derivatives in the country.

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The National Green Hydrogen Mission was launched on 04th January 2023 with an outlay of Rs. 19,744 crores up to FY 2029-30. It will contribute to India’s goal to become Aatmanirbhar (self-reliant) through clean energy and serve as an inspiration for the global Clean Energy Transition. The Mission will lead to significant decarbonization of the economy, reduced dependence on fossil fuel imports, and enable India to assume technology and market leadership in Green Hydrogen.

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