The Uttar Pradesh government will promote startups working in the field of green hydrogen, which is seen as a future green alternative to fossil fuels.
The state has announced incentives for startups intending to invest in the green hydrogen ecosystem to generate 120,000 jobs in the next five years and catalyse environmental sustainability also.
Under this initiative, the Yogi Adityanath government will offer a maximum annual incentive of Rs 25 lakh per startup for duration of 5 years. Additionally, the policy encourages the establishment of incubators to nurture innovation.
UP New and Renewable Energy Development Agency (UPNEDA) will serve as the nodal agency for implementing the green hydrogen policy. A financial allocation of Rs 5,000 crore will be earmarked for the implementation of the policy.
To facilitate the establishment of green hydrogen projects, the government will offer village society and government land on a lease basis for 30 years.
The lease rate for public sectors will be set at Rs 1 per acre per annum, whereas for private investors, it will be Rs 15,000 per acre per year.
The allocated land will be transferable; if it remains unused for green hydrogen projects within the 3-year allocation period, it will be reclaimed. The green hydrogen projects will be categorised under the ‘White Category’ for environmental clearance.
Moreover, the state will compile data on the availability of land banks and water resources, providing assistance to potential investors in acquiring land, water, and power transmission systems as needed.
To reduce the production cost of green hydrogen and fostering technical advancements, two Centers of Excellence (CoE) will be established.
The government educational institutions will receive up to a maximum of Rs 50 crore in the form of 100 percent financial incentives.
Meanwhile, the state aims to achieve an annual production target of a million tonnes of green hydrogen/green ammonia by 2028.