"Uttar Pradesh Greenlights Green Hydrogen Policy, Plans Establishment of 800 MW Thermal Plants"

In a significant move towards sustainable energy development, the Uttar Pradesh government, led by Chief Minister Yogi Adityanath, approved a green hydrogen policy during a Cabinet meeting held on Tuesday. Alongside this policy, the government also gave the green signal for the establishment of two units of 800 MW in Anpara, collaborating with NTPC, with an estimated cost of Rs 8,624 crore.

Energy Minister AK Sharma highlighted the importance of transitioning from gray hydrogen to green hydrogen, emphasizing the need for technological advancements in hydrogen production. The newly approved policy sets ambitious targets, aiming to produce one million metric tonnes of green hydrogen annually by 2028.

The green hydrogen policy spans five years, incentivizing industries to establish themselves within this timeframe with subsidies totaling Rs 5,045 crore. These incentives include subsidies ranging from 10 to 30 per cent on capital expenditure, with early entrants enjoying discounts of up to 40 per cent. Additionally, the policy offers provisions for energy banking, intrastate electricity charge rebates, exemption from electricity duty, and more.

Regarding the establishment of thermal plants, the Cabinet approved the proposal for two units of 800 MW in Anpara, Sonbhadra district, in collaboration with NTPC. This initiative, advancing through a 50-50 partnership between the state government and NTPC, is expected to significantly contribute to the state's electricity production. The financial structure involves a 30 per cent equity shared between the state government and NTPC, with the remaining 70 per cent financed through loans. Acquisition of coal mines from Northern Coalfields Ltd nearby is anticipated to facilitate cost-effective electricity production.

The approval of these projects reflects the state government's commitment to both environmental sustainability and energy security. These initiatives not only pave the way for cleaner energy production but also hold the potential for significant economic growth and job creation in Uttar Pradesh.

BS