MNRE revises pilot scheme for innovative green hydrogen projects
Author: PPD Team Date: August 5, 2025
The Ministry of New and Renewable Energy (MNRE) has issued updated guidelines for its pilot initiative to advance the use of innovative technologies in Green Hydrogen production and application.
The revised framework focuses on demonstrating new production methods such as floating solar systems, biomass-based technologies, and wastewater-based hydrogen generation. It also encourages testing decentralised applications, including cooking, space heating, off-grid power, and off-road transport. Another priority is to ensure safe deployment in residential and public settings.
The scheme has a total budget of Rs 200 crore available through the financial year 2025–26. It is split equally between two components. Part A sets aside Rs. 100 crore for pilot projects involving biomass or other emerging production technologies, with a funding cap of Rs. 25 crore per project. Part B earmarks Rs. 100 crore for startup-led proposals, capped at Rs. 5 crore per project.
Funding support will cover up to 80 per cent of equipment costs for private sector projects. Government entities are eligible for full reimbursement of equipment costs.
Scheme Implementing Agencies (SIAs) such as the National Institute of Solar Energy (NISE) will carry out the projects. A Project Appraisal Committee (PAC) will assess proposals, and final approvals will be handled by an Advisory Group. The MNRE Secretary will chair a Steering Committee responsible for progress tracking.
The guidelines include strict timelines and financial penalties for delays. Any unused funds must be returned with interest.
The scheme is intended to address current gaps in Green Hydrogen technology, regulation, and infrastructure. The scheme supports the goals of the National Green Hydrogen Mission and has been approved by the President of India.
Startups, non-profits, and corporate applicants can now submit project proposals to designated SIAs. The latest version of the guidelines replaces those issued on November 8, 2024.
The full guidelines can be accessed here.