Boosting Fertilizer Sector in NGHM's SIGHT Programme

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Context

• Government enhances allocation for Fertilizer Sector under SIGHT Programme of the National Green Hydrogen Mission (NGHM).

National Green Hydrogen Mission (NGHM)

• The Ministry of New & Renewable Energy (MNRE) is spearheading the National Green Hydrogen Mission (NGHM) with the aim of achieving a production capacity of 5 million tonnes per annum of Green Hydrogen by 2030.
• Scheme Guidelines for implementing the SIGHT Programme – Component II: Incentive for Procurement of Green Ammonia Production (under Mode2A) were issued on 16.01.2024, targeting the fertilizer sector.

READ ALL ABOUT NATIONAL GREEN HYDROGEN MISSION: https://www.iasgyan.in/daily-current-affairs/national-hydrogen-mission-45#:~:text=Under%20National%20Hydrogen%20Mission%2C%20India,replace%20fossil%20fuels%20in%20future.

Mission Objectives:

• The NGHM, launched on 04th January 2023, aims to contribute to India’s goal of self-reliance through clean energy.
• With an outlay of Rs. 19,744 crores up to FY 2029-30, the Mission is poised to drive significant decarbonization of the economy and reduce dependence on fossil fuel imports.

Global Implications:

• The NGHM serves as a model for the global Clean Energy Transition, positioning India as a leader in the adoption of green hydrogen technologies.
• It paves the way for India to assume technology and market leadership in the domain of Green Hydrogen.

READ ALL ABOUT STRATEGIC INTERVENTIONS FOR GREEN HYDROGEN TRANSITION (SIGHT) PROGRAMME

https://www.iasgyan.in/daily-current-affairs/strategic-interventions-for-green-hydrogen-transition-sight-programme

Initial Allocation under SIGHT Programme:

• Tranche I of Mode 2A offered a capacity of 5,50,000 tonnes per annum of Green Ammonia.
• Solar Energy Corporation of India (SECI) initiated a competitive bidding process for selecting Green Ammonia Producers.

Escalating Demand:

• The demand for Green Ammonia from the fertilizer sector has surged in tandem with the implementation of the NGHM.

Amendment Details:

• MNRE has decided to amend the Scheme Guidelines dated 16.01.2024 to accommodate the rising demand.
• The amendment increases the allocation under Mode 2A Scheme for the Fertilizer sector by 2 lakh tonnes per annum.
• The existing allocation of 5,50,000 tonnes per annum of Green Ammonia has been elevated to 7,50,000 tonnes per annum.

Significance:

• This amendment is a crucial step towards stimulating demand for Green Hydrogen and its derivatives in the country.
• It underscores MNRE's commitment to fostering a robust ecosystem for clean energy production and utilization.

Conclusion:

• MNRE's proactive amendment to the Scheme Guidelines reflects its dedication to realizing the objectives of the National Green Hydrogen Mission.
• This amendment marks a pivotal moment in India's journey towards a sustainable and self-reliant energy future.

SOURCE: PIB