Schedule a Call Back
Industry urges customs duty cuts for green hydrogen viability in India
Industry News- Jan 09,24
Renewable energy devices such as solar modules face substantial customs duties and taxes upon import, rendering the establishment of Green Hydrogen facilities economically uncompetitive, according to experts.
In a bid to make the production of Green Hydrogen economically viable in India, industry stakeholders have suggested that the government reduce customs duty on essential capital items, including solar modules.
Renewable energy devices such as solar modules face substantial customs duties and taxes upon import, rendering the establishment of Green Hydrogen facilities economically uncompetitive, according to experts.
Presently, India's solar photovoltaic cell manufacturing capacity is at 3 gigawatts (GW), with a significant portion of module manufacturing relying on imports. The cumulative tax rate, encompassing customs duty on solar module imports, exceeds 60%, leading to elevated output prices that render Green Hydrogen and its derivatives non-marketable.
Experts emphasise that more than 50% of the setup cost for a Green Hydrogen facility is attributed to the renewable energy plant, with the overall tax cost standing at approximately 30%.
To foster the viability of Green Hydrogen manufacturing in India, experts propose offering customs duty concessions on capital items crucial for establishing an integrated Green Hydrogen facility for a duration of 2-3 years.
In January 2023, the government introduced the 'National Green Hydrogen Mission' with an allocation of Rs 19,744 crore, aiming to develop a Green Hydrogen production capacity of at least 5 MMT per annum by 2030, accompanied by an increase in renewable energy capacity to about 125 GW.
To achieve these ambitious targets, the setup of a Green Hydrogen production facility requires various capital items, such as feedstock, feedwater, and electrolyser, in addition to substantial investments in storage mechanisms, transportation pipelines, and safety systems.
In light of the government's aggressive Green Hydrogen generation goals, suggestions include the elimination of the Approved List of Models and Manufacturers (ALMM), introduced in 2021 as a non-tariff barrier to promote domestic manufacturing. Furthermore, experts propose the provision of export incentives, the establishment of dedicated zones, and tax incentives to bolster the National Green Hydrogen mission in India.
Source: The Financial Express
Related Stories
Electrical & Electronics
IESA champions battery storage growth, welcomes Government’s second VGF tranche
India Energy Storage Alliance (IESA) supports government’s second Viability Gap Funding (VGF) tranche to advance 30 GWh of battery storage by 2028, backed by Rs 54 billion from the Power System De..
Read moreAutomation & Robotics
Primus Partners, ASSOCHAM spotlight AI in manufacturing at Odisha Conclave
Primus Partners and ASSOCHAM unveil AI-led manufacturing roadmap at Odisha Manufacturing Conclave 2025, positioning Odisha as a model for industrial transformation.
Read moreAerospace Defence
Garuda Aerospace opens agri-drone facility and 300 centres of excellence
This expansion of Garuda’s manufacturing capabilities marks a significant step forward in India's efforts to localise drone production. The facility is set to manufacture 7 subsystems and 33 parts..
Read moreRelated Products
Air Generators
GAS GENERATION & GAS PURIFICATION PLANTS
Enersys offers a wide range of hot air generators. Read more
Gas Roaster
GAS GENERATION & GAS PURIFICATION PLANTS
Fans Bro Erectors offers roaster machine with LPG/CNG gas heating arrangements. Read more
Gas Purification System
GAS GENERATION & GAS PURIFICATION PLANTS
PCI Analytics offers a wide range of GC gas purification system. Read more
latest News
Subscribe to iNoW
For Industry News on WhatsApp, Give a Miss Call on: +91 84228 74016
