India's Ambitious Green Hydrogen Mission: Navigating Regulatory Hurdles for Success
Key Ideas
- India launches National Green Hydrogen Mission aiming to be a global green hydrogen production hub with a budget of ₹19,744 crore by 2030.
- Complex regulatory landscape in India involving central, state, and local authorities requires over 73 distinct approvals for green hydrogen projects.
- Government introduces National Single Window System to streamline approvals, but only Gujarat, Kerala, and Rajasthan have integrated systems as of July 2025.
- Developers advised to engage with non-integrated departments early, secure offtake agreements, green financing, and form regulatory liaison teams to mitigate risks.
India has set its sights on becoming a prominent player in green hydrogen production with the launch of the National Green Hydrogen Mission (NGHM) in January 2023. The mission, backed by a substantial budget of ₹19,744 crore, aims to produce 5 million metric tonnes of green hydrogen annually by 2030. However, achieving this target involves navigating a complex regulatory environment that spans central, state, and local levels in the country.
The regulatory process for green hydrogen projects in India is intricate, requiring developers and investors to obtain over 73 distinct approvals depending on factors such as location and project type. These approvals are categorized into pre-establishment and pre-operation stages and involve various central government bodies like the Ministry of Corporate Affairs, Central Pollution Control Board, and more. State-level approvals encompass a range of permits and clearances, including land use, building permits, and environmental impact assessments.
To simplify and expedite the approval process, the government introduced the National Single Window System (NSWS), a digital platform that allows applicants to manage their approvals online. However, as of July 2025, only a few states have fully integrated their systems with NSWS, leading to the need for manual follow-ups in other regions.
Given the diverse regulatory landscape across different states, developers are advised to conduct thorough due diligence early in the project lifecycle. Strategies such as securing long-term offtake agreements, leveraging green financing options, and establishing dedicated regulatory liaison teams are essential for successful navigation of the regulatory maze.
While specific financial requirements like Earnest Money Deposit (EMD) or Performance Bank Guarantee (PBG) amounts were not outlined in the regulatory white paper, the emphasis was placed on the significance of understanding and complying with regulatory frameworks from the outset. By being well-prepared and informed, developers can mitigate delays and cost escalations, ensuring the smooth execution of green hydrogen projects in India.
Topics
Green Hydrogen
Green Energy
Sustainable Development
Government Initiatives
Project Management
Investment Opportunities
Regulatory Landscape
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