India’s green hydrogen ecosystem received a significant boost in May 2025 when the Ministry of Ports, Shipping and Waterways (MoPSW) designated three major ports—Kandla (Deendayal), Paradip, and V.O. Chidambaranar (Tuticorin)—as national green hydrogen hubs. Concurrently, fifteen states rolled out dedicated policies to foster green hydrogen production, signaling a concerted push from both the centre and state governments to position India as a leading producer and exporter of clean hydrogen.
Port Hubs: Strategic Gateways for Hydrogen Production and Export
The selection of Kandla, Paradip, and Tuticorin reflects a strategic focus on leveraging existing port infrastructure and coastal wind/solar resources:
- Kandla (Gujarat) offers deep-draft berths, proximity to gas and petrochemical clusters, and extensive solar capacity in Kutch.
- Paradip (Odisha) provides direct linkage to eastern India’s burgeoning steel and fertilizer industries, alongside planned offshore wind sites.
- Tuticorin (Tamil Nadu) combines a large bulk cargo terminal with strong solar irradiance and nascent wind potential in southern India.
Under the National Green Hydrogen Mission (NGHM), these hubs will receive priority trunk infrastructure—pipelines, storage terminals, and integrated electrolyser facilities—funded through MNRE allocations. The hubs aim to aggregate production from multiple developers, facilitating economies of scale and reducing per-kilogram hydrogen costs by 20–25 percent over standalone projects.
State-Level Policies: Building a Decentralized Hydrogen Ecosystem
Fifteen states have unveiled green hydrogen policies that offer incentives spanning fiscal support, land allotment, and streamlined clearances:
| State | Key Incentive Features |
| Gujarat | Investment subsidies up to 25 percent of capex; single-window green corridors. |
| Odisha | Waiver of stamp duty on land for green H₂ projects; preferential grid access. |
| Tamil Nadu | Generation-based incentives (₹0.50–1.00/kg H₂); concessional land leases. |
| Maharashtra | Halved water-use charges for electrolysis; green-hydrogen R&D grants. |
Most policies also incorporate provisions for public-private partnerships, production-linked incentives (PLI) for electrolyser manufacturing, and integration with existing renewable energy RPO frameworks. By decentralizing support, states aim to catalyze regional hubs that feed into the three port gateways, creating a contiguous supply chain from inland production to coastal export.
National Green Hydrogen Mission
The NGHM, launched in January 2023 with an initial outlay of US $2.4 billion, set out to achieve 5 million tonnes per annum of green hydrogen capacity by 2030 and to mobilize US $100 billion in investments. Early pilot projects spanned steel, mobility, and shipping sectors, testing electrolyser integration with existing industrial loads. The Green Hydrogen Certification Scheme, introduced in April 2025, established traceability and emission-intensity benchmarks for market credibility, while the Ministry of Environment granted blanket environmental-clearance exemptions for green H₂ and ammonia plants to expedite project roll-out.
State policies followed soon after the NGHM framework, beginning with Gujarat’s pioneering policy in mid-2023 and cascading through southern and eastern states by late 2024. This staggered rollout allowed policymakers to incorporate lessons on grid integration, land acquisition, and water-use management, refining incentive structures over time.
Implications and Challenges
The port-hub model centralizes trunk infrastructure investment and enhances export potential—especially to Europe and Southeast Asia—where demand for certified green hydrogen is rising. State policies stimulate domestic production, reduce logistics costs, and create jobs in manufacturing, construction, and operations. Collectively, these measures are projected to avert nearly 50 MMT of CO₂ emissions annually once the 2030 targets are met.
However, challenges remain:
- High Production Costs: Electrolyser capex (US $800–1,200/kW) and renewable-power tariffs must decline further to reach parity with fossil-derived hydrogen.
- Infrastructure Gaps: Pipeline networks, storage terminals, and bunkering facilities require rapid scaling.
- Standardization: Harmonizing state-level policies with national certification standards is critical to avoid regulatory fragmentation.
Way Forward
To sustain momentum, government and industry stakeholders must:
- Accelerate Cost Reductions: Scale up electrolyser manufacturing under PLI to halve capex by 2030.
- Enhance Grid Flexibility: Expand transmission and storage capacity to provide firm, low-cost renewable power for electrolysis.
- Strengthen Export Linkages: Develop dedicated green hydrogen export corridors via the three port hubs, with blended-finance support from multilateral banks.
- Foster Public-Private Collaboration: Leverage state incubators and industry consortiums to pilot new applications in mobility, ammonia, and steel sectors.
By aligning port infrastructure with robust state policies and central certification schemes, India is charting a holistic pathway to becoming a global green hydrogen powerhouse—delivering climate benefits at home and fostering energy security overseas.
