Boosting Fertilizer Sector in NGHM's SIGHT Programme

Disclaimer: Copyright infringement not intended.

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.

PRACTICE QUESTION Q. Discuss the significance and objectives of the National Green Hydrogen Mission (NGHM) in the context of India's energy transition and its potential implications for the country's self-reliance and global leadership in clean energy.

SOURCE: PIB