Strategic Intervention for Green Hydrogen Transition

An important component of the National Green Hydrogen Mission is the Strategic Intervention for Green Hydrogen Transition (SIGHT) Program. Of the total outlay of 19,744 cr towards the mission (till 2030), ~89% (i.e Rs. 17,490 cr) is dedicated towards the SIGHT Program. The objective of program is to facilitate rapid scale-up, technology development and cost reduction of Green Hydrogen production through financial support / incentives. The SIGHT Program has two main areas (Components) of financial support:

• Component 1: To support domestic manufacture of electrolysers -- Allocation of Rs.   4,440 cr

• Component 2: To support domestic production of Green Hydrogen -- Allocation of Rs. 13,050 cr 

Component 1:

This component aims to (i) maximise indigenous electrolyser manufacturing capacity, (ii) lower cost of hydrogen production, (iii) supporting technologies. SECI has been nominated as the implementation agency for this component. 

SECI had floated the first tender for procurement under this scheme in July 2023 as Tranche 1 for 1200 MW capacity in Bucket 1 (Any technology stack) and 300 MW capacity in Bucket 2 (Indigenously developed technology stack).  The results are available on page. 

The Tranche 1 tender had an interesting bidding mechanism.  Key highlights were as follows:

• Buckets : Bids in two buckets; 

  • Bucket 1 - Technology Agnostic; Total Capacity: 1200 MW; Project Size - Min 100 MW / Max 300 MW

  • Bucket 2 - Indigenous Technology; Total Capacity: 300 MW; Project Size - Min NA / Max 300 MW

• Bid Parameter: Bidders required to quote financial support in first five years of operation (Note: This support is structured as PLI and hence available only on actual sale of electrolysers)

• Selection Parameter: A multiplier (Selection Parameter) is assigned to each bid based on the Performance Quotient (based on Specific Energy Consumption) and LVA Factor (based on Local Value Add) for each of the five years. The bid financial support is multiplied by this Performance Multiplier ensuring that efficient and localised plants gets preference.

• Selection Parameter: A multiplier (Selection Parameter) is assigned to each bid based on the Performance Quotient (based on Specific Energy Consumption) and LVA Factor (based on Local Value Add) for each of the five years. The bid financial support is multiplied by this Performance Multiplier ensuring that efficient and localised plants gets preference.

  • Performance Quotient

  • LVA Factor: 

• The 

Component 2: