NCT shelves Mundra green hydrogen transmission scheme over lack of demand

The National Committee on Transmission (NCT) has decided to shelve a dedicated transmission scheme planned to supply power to a proposed green hydrogen and ammonia manufacturing hub in Mundra, Gujarat, citing absence of demand visibility.

The project, titled “Transmission System for supply of power to Green Hydrogen/Ammonia manufacturing potential in Mundra area of Gujarat under Phase-I: Part B1 scheme (3 GW at Navinal S/s),” was earlier recommended in the 22nd NCT meeting with an estimated cost of Rs 2,817 crore. It had been awarded through Tariff Based Competitive Bidding (TBCB) in 2024 to Mundra I Transmission Limited, an Adani Energy Solutions entity.

Despite progress in the bidding process, the Ministry of New and Renewable Energy (MNRE) informed the NCT that there is currently no visibility of green hydrogen or green ammonia projects in the Mundra region. The Central Transmission Utility of India Limited (CTUIL) also confirmed that no General Network Access (GNA) applications have been received against the planned 3 GW capacity.

Based on these inputs, the NCT decided that the scheme will be reconsidered only when there is clear demand visibility, effectively placing it on hold.

Expert Member Shri S.R. Narasimhan highlighted that the absence of the expected green hydrogen load could lead to increased congestion in the Khavda transmission system, which had been planned assuming this demand would materialise.

The featured photograph is for representation only.