Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme

Syllabus: Infrastructure – Energy, Environment, and Internal Security (UPSC Prelims)
Source: ET

Context:

India achieved a record-low price of ₹55.75/kg for Green Ammonia in the first SECI auction under the SIGHT Scheme, marking a milestone in the National Green Hydrogen Mission.

Overview of the SIGHT Scheme

• What It Is: A flagship financial support programme under the National Green Hydrogen Mission to accelerate India’s shift towards green hydrogen.
• Implemented By: Ministry of New and Renewable Energy (MNRE) with the Ministry of Petroleum & Natural Gas (MoPNG).
• Core Objectives:
  • Scale up production and use of green hydrogen.
  • Make green hydrogen cost-competitive with fossil fuels.
  • Generate domestic demand in priority sectors.

Implementation Structure

• Mode 1: Incentives to the bidder seeking the lowest support.
• Mode 2A: Aggregated demand for Green Ammonia (fixed incentive).
• Mode 2B: Aggregated demand for Green Hydrogen (fixed incentive).

Key Features

• Budget Outlay: ₹17,490 crore under SIGHT from the total mission budget of ₹19,744 crore.
• Incentive Rates (Mode 2B): ₹50/kg (Year 1), ₹40/kg (Year 2), ₹30/kg (Year 3).
• Bidding Process: Competitive reverse auctions by SECI and Oil PSUs.
• Eligibility: Only hydrogen meeting notified “Green Hydrogen” standards.
• Monitoring: Joint MNRE–MoPNG committee to ensure compliance and address issues.

Green Ammonia – First SECI Auction (Mode 2A)

• What It Is: Ammonia (NH₃) produced from green hydrogen (via electrolysis using renewable power). Used in fertilisers, shipping fuel, and chemicals.
• Auction Highlights:
  • Winning Price: ₹55.75/kg (USD 641/MT).
  • Offtaker: Paradeep Phosphates Ltd., Odisha.
  • Quantity: 75,000 MTPA from a total tender of 7.24 lakh MTPA.
  • Term: Fixed 10-year supply agreement.

Significance of the Achievement

• Supports clean fertiliser production and reduces import dependency.
• Encourages long-term private sector investment in green hydrogen derivatives.
• Strengthens India’s position as a future green ammonia exporter.