The first part of India’s National Green Hydrogen policy has been announced on Thursday. The government will give incentives for potential manufacturers, generation companies and distribution licensees to boost large scale indigenous production of green hydrogen.

This will be done so as to decarbonize the energy sector and reduce India’s heavy dependence on fossil fuels and crude oil imports.

The notification was released by the ministry of power. This came 1 year after finance minister Nirmala Sitaraman revealed about India’s plan to harness green hydro in 2021 budget speech.

Later that year, Prime Minister Narendra Modi announed the National Hydrogen Energy Mission in his Independence Day speech. The second part of the policy is likely to be about mandating the usage of green hydrogen and green ammonia in a phased manner.