UP Govt Unveils Incentives To Boost Green Hydrogen Startups
In a bid to bolster the green energy sector and promote environmental sustainability, the Uttar Pradesh government has rolled out significant incentives for startups investing in green hydrogen.
This move comes following the approval of the Green Hydrogen Policy at the Cabinet meeting held on Tuesday, chaired by the chief minister Yogi Adityanath. The initiative aims to invigorate the startup ecosystem in Uttar Pradesh and is projected to generate approximately 1.20 lakh jobs over the next five years.
Under the scheme, startups venturing into green hydrogen will receive substantial financial support, with a maximum annual incentive of Rs 25 lakh per startup for a duration of five years. Moreover, the policy incentivises the establishment of incubators to nurture innovation in the sector, fostering a conducive environment for startup growth and development.
The Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) has been designated as the nodal agency for implementing the Green Hydrogen policy, overseeing its effective execution and monitoring.
To facilitate the establishment of green hydrogen projects, the government has announced the availability of village society and government land on a lease basis for a period of 30 years. Public sector entities will be granted land at a nominal rate of Rs 1 per acre per annum, while private investors will have access to land at a lease rate of Rs 15,000 per acre per year.
The allocated land will be transferable, with provisions in place for reclamation if left unused for green hydrogen projects within the stipulated time frame.
As part of the Ease of Doing Business initiative, UPNEDA will integrate the single-window portal with Nivesh Mitra, streamlining administrative processes for investors. Green hydrogen projects will be categorised under the White Category for environmental clearance, further expediting regulatory approvals.
The state government will also compile data on land banks and water resources, providing assistance to potential investors in land acquisition, water supply, and power transmission systems as required.
In a bid to drive technological advancements and reduce production costs, the government plans to establish two Centers of Excellence. Government educational institutions will receive financial incentives of up to Rs 50 crores each to support research and development in green hydrogen technologies.
Additionally, the policy takes into account incentives provided by the Government of India, ensuring alignment with national objectives and initiatives. Uttar Pradesh aims to achieve an annual production target of one million metric tons of green hydrogen/green ammonia by 2028, with a total financial allocation of Rs 5,000 crore earmarked for policy implementation.
The announcement underscores Uttar Pradesh's commitment to fostering innovation, promoting sustainable development, and positioning the state as a frontrunner in the green energy landscape.
