SIGHT Programme of the National Green Hydrogen Mission (NGHM)

General Studies Paper-3 

Context: Government enhanced allocation for the Fertilizer Sector under SIGHT Programme of the National Green Hydrogen Mission (NGHM).

About National Green Hydrogen Mission (NGHM)

• The Union Cabinet has approved the National Green Hydrogen Mission in January in 2023 and the initial outlay for the Mission is 19,744 crore, including an outlay of Rs.17,490 crore for the SIGHT programme, Rs.1,466 crore for pilot projects, Rs.400 crore for R&D, and Rs. 388 crores towards other Mission components.

The Mission will result in the following likely outcomes by 2030:

• Development of green hydrogen production capacity of at least 5 MMT (Million Metric Tonne) per annum with an associated renewable energy capacity addition of about 125 GW in the country
• Over Rs. Eight lakh crores in total investments
• Creation of over Six lakh jobs
• Cumulative reduction in fossil fuel imports over Rs. One lakh crore
• Abatement of nearly 50 MMT of annual greenhouse gas emissions

Latest Developments

• Under the Mission, MNRE had issued the Scheme Guidelines for implementation of SIGHT Programme – Component II: Incentive for Procurement of Green Ammonia Production (under Mode2A) of the NGHM in January 2024.
  • Mode 2A caters to the requirements of the fertilizer sector.
  • As per the said Guidelines, the capacity available for bidding under Tranche I of Mode 2A was 5,50,000 tonnes per annum of Green Ammonia.
• This is a significant step towards demand creation of Green Hydrogen and its derivatives in the country.

Importance

• It will contribute to India’s goal to become Aatmanirbhar (self-reliant) through clean energy and serve as an inspiration for the global Clean Energy Transition.
• It will lead to significant decarbonization of the economy, reduced dependence on fossil fuel imports, and enable India to assume technology and market leadership in Green Hydrogen.