India has moved from allocating green hydrogen incentives to commissioning projects, but the gap between planned capacity and operational assets is stark. The government has awarded incentives for 8.62 lakh tonnes per annum of production and 3,000 MW of electrolyser manufacturing, yet only 11,329 tonnes are operational out of a 6 million tonne pipeline. Financing and offtake remain the key hurdles, with the market price for renewable hydrogen at USD 3.22 per kg versus the USD 1.50-1.75 per kg that hard-to-abate industries say they need for commercial viability. Recent tenders have set price benchmarks, such as green ammonia at Rs 49.75 per kg and green hydrogen at Rs 279 per kg for a refinery supply deal. The government is trying to build demand through refinery-linked capacity and pilot projects in steel and mobility. A new certification portal launched in June 2026 aims to standardize carbon intensity tracking. The next phase depends on converting awarded projects into financed, constructed assets, with renewable power availability and infrastructure development likely to determine the pace.
