Financial aid of upto Rs 25 lakh per startup to be provided annually for 5 years in green hydrogen sector
Yogi government announces incentives for investors in green hydrogen to push for environmental sustainability
By Our Correspondent
Lucknow: Close on the heels of approving the Green Hydrogen Policy at a Cabinet meeting on Tuesday, the Yogi government has announced significant incentives for startups intending to invest in the sector in Uttar Pradesh. The move aims to boost the startup ecosystem in the state while creating around 1.20 lakh jobs in the next five years and at the same time push for environmental sustainability.
Under this initiative, the Yogi government plans to inject substantial financial support into startups venturing into green hydrogen, offering a maximum annual incentive of Rs 25 lakh per startup for a duration of 5 years. Additionally, the policy encourages the establishment of incubators to nurture innovation in the sector.
The Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) will serve as the nodal agency for implementing the Green Hydrogen policy.
Land will be made available on lease for 30 years
To facilitate the establishment of green hydrogen projects, the government will offer village society and government land on a lease basis for 30 years. The lease rate for public sectors will be set at Rs 1 per acre per annum, whereas for private investors, it will be Rs 15,000 per acre per year. The allocated land will be transferable, with a provision that if it remains unused for green hydrogen projects within the 3-year allocation period, it will be compulsorily reclaimed.
Under the Ease of Doing Business initiative, UPNEDA will integrate the single-window portal with Nivesh Mitra. The green hydrogen projects will be categorized under the White Category for environmental clearance. Additionally, the state government will compile data on the availability of land banks and water resources, providing assistance to potential investors in acquiring land, water, and power transmission systems as needed.
Two Centers of Excellence will also be established
To reduce the production cost of green hydrogen and fostering technical advancements, two Centers of Excellence will be established. Government educational institutions will receive up to a maximum of 50 crores in the form of 100 percent financial incentives.
In addition to the statutory incentives outlined in this policy, any incentives provided by the Government of India at various intervals will be taken into account and deemed permissible. The state aims to achieve an annual production target of one million metric tons of green hydrogen/green ammonia by 2028. A total financial allocation of Rs 5,000 crore will be earmarked for the implementation of this policy.
