Page 29 - CII ARTHA India’s Growth Prospects

Notes
according to Niti Aayog and are hesitant to under Article 6 of the Paris consider implementing a
RMI. The move encourages finance/refinance large-scale Agreement. It will help nationwide policy mandating
manufacturers and project green hydrogen projects. create a marketplace for the use of Green M15 fuel i.e.
developers to invest in green • The production cost of Indian green fuels like green mixing 15 per cent green
hydrogen and its derivatives various green fuel hydrogen and its methanol with petrol, in
like green ammonia and technologies, such as green derivatives, green methanol, transportation and other
methanol, putting India among hydrogen and its and SAF, among others, in applicable sectors, supported
those leading countries, such derivatives, is higher. the international market. by incentives for producers
as the United States and the However, grey hydrogen, • There’s a need for speeding and consumers to adopt this
European Union, which have alongside various grey up strategic interventions fuel. This could be a pivotal
allocated public funding for manufacturing methods, has for the Green Hydrogen step in India's journey TWO YEAR
green hydrogen. towards a greener and more
historically benefited from Transition Program by
subsidies. Without a robust offering incentives for both sustainable future. PGDM PROGRAMS
Establishing a market for green and liquid global carbon green hydrogen production • To ensure widespread
ammonia and methanol is a market, pricing the value of and electrolyser availability of Green M15 fuel,
global issue. In India, carbon and embedded manufacturing. These there’s a need for investment
forward-thinking standards by emissions in the production initiatives will catalyze in the necessary
the Bureau of Indian Standards, and usage of grey hydrogen industry growth. infrastructure for its
such as blending DME with becomes challenging. This is production, distribution, and
LPG and methanol with diesel, why, initially, green • The cost of renewable storage. Accreditations & Approvals
are significant steps towards hydrogen seems more energy can be further IMT GHAZIABAD’S
integrating green fuels. reduced through energy • Campaigns should be
expensive than grey surplus banking provisions, launched to educate the GLOBAL RANKINGS
hydrogen.
especially for sectors public and other stakeholders
• The cost of funding remains mandated to use green about the benefits of using
a persistent bottleneck, hydrogen. Green M15 fuel and address
presenting a considerable • The government should misconceptions.
challenge for project implement targeted *
developers, impacting the incentives to boost the By adopting these
optimization of capital export of green molecules. recommendations, India can
expenditure and project It will help establish India as make significant strides towards 2024
execution. energy self-reliance,
a global leader in environmental sustainability, and Globally Top#100 FT Masters in QS World Business
renewable energy.
Suggestions • A mechanism should be economic growth. Management Ranking 2023 Master’s Ranking 2024
developed to facilitate Conclusion
Challenges To address the challenges, we low-cost financing and
provide benefits like
suggest that the government
take several steps to provide a accelerated depreciation This is the time to take #20 GLOBALLY 151 + MASTER’S IN
Alumni Career
MANAGEMENT
Despite government efforts much-needed boost to the for green hydrogen immediate action to overcome BAND
to promote green hydrogen industry, such as: infrastructure investments. all the bottlenecks on the road Progression PGDM
and its derivatives, the sector • The government should towards leading the global
is still in its infancy, and • As in the initial days of expand the FAME India transition to sustainable energy.
acknowledging and addressing renewable energy, the (Faster Adoption and With right policies in place and
the hurdles that impede our government mandated its Manufacturing of (Hybrid the development of a market for IN INDIA + MASTER’S IN
full potential in this critical usage through Renewable &) Electric Vehicles in India) green methanol and ammonia, #03 Alumni Career 101 MARKETING
sector is essential. Among the Purchase Obligation (RPO). Scheme to include green India can unlock the full Progression BAND
various challenges are - potential of green hydrogen and PGDM Marketing
Similarly, we suggest that a methanol vehicles in it. It its derivatives. Moreover, it will
• There isn’t much existing quota should be mandated will not only boost the provide a much-needed boost
demand and a developed for the use of green market but also provide for the production, distribution,
market ecosystem for hydrogen in sectors like support to the green and usage of green hydrogen and MASTER’S IN
green hydrogen and its fertilizers, chemicals, steel, hydrogen ecosystem in the its derivatives across sectors. 151 +
derivatives like green and power generation. country. Such initiatives will not only help BAND FINANCE
ammonia and methanol, not Creating demand through • There’s a need for funding India in achieving targeted PGDM Banking and
only in India but also policy will spur sectoral and support for research climate goals but also position it Financial Services
globally, compared to other growth and reduce the and development in the as a leader in the green energy
conventional fuels. production cost of green areas of green hydrogen revolution.
hydrogen.
• Project developers face and methanol-based * The Financial Times ( United Kingdom )
difficulty in getting final • Leveraging its international technologies. It will further GET IN TOUCH
offtake agreements signed. relations, the government help enhance efficiency and 0120-4083306 Institute of Management Technology
Raj Nagar, Post Box No. 137
should expedite the signing reduce costs. admissions@imt.edu 0120-4083380 Ghaziabad, Delhi NCR 201001, India
• In the absence of advance +91-9810214551
offtake contracts, lenders of bilateral agreements • The government should www.imt.edu
28 ANALYSIS, RESEARCH, THOUGHT LEADERSHIP & ADVOCACY ANALYSIS, RESEARCH, THOUGHT LEADERSHIP & ADVOCACY 29
QUARTERLY JOURNAL OF ECONOMICS
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FEBRUARY 2024 FEBRUARY 2024