On December 11, 2023, the Ministry of New and Renewable Energy (MNRE), a pivotal player in the Indian government's efforts to achieve decarbonization goals, has proposed granting an exemption to green hydrogen developers, allowing them to import solar PV modules and wind turbine models from China, bypassing the list of authorized manufacturers. In a meeting with green hydrogen developers on October 19, as revealed through an RTI access by The Indian Express, MNRE also suggested waiving duties and taxes on equipment imports until 2035 for establishing export-oriented green hydrogen projects.

During the meeting, developers requested an exemption from a Ministry of Finance order dated February 8, 2021, which restricted the public procurement of equipment from countries sharing a land border with India, primarily targeting China. The MNRE has further put forth the idea of reviewing the possibility of excluding green hydrogen developers from its list of authorized manufacturers, allowing them to import solar PV modules and wind turbine models from China to enhance the competitiveness of green hydrogen exports. Notably, the adherence requirement to the Approved List of Models and Manufacturers (ALMM) has been temporarily suspended for the current fiscal year to boost solar capacity due to the shortfall in domestic manufacturing.

The exemptions proposed aim to facilitate the import of renewable energy equipment at competitive prices. This would enable central Public Sector Undertakings (PSUs) like Indian Oil Corporation Ltd and NTPC Ltd, engaged in green hydrogen projects, to procure equipment manufactured in China. Coupled with the suggested exemption from duties and taxes on equipment imports for export-oriented green hydrogen projects, including renewable energy plants, developers stand to gain a competitive edge globally by offering more attractive prices for green hydrogen.

To achieve its green hydrogen targets by 2030, India aims to add an additional 125 GW of renewable energy capacity, nearly three-fourths of its current total capacity of 179 GW. Importing solar PV modules from China is seen as crucial for meeting supply demands and enhancing the global competitiveness of Indian green hydrogen exports.

Furthermore, China holds a significant share, with 40% of global manufacturing capacity for electrolyzers, making it a global hub for electrolyzer production. India, planning to install 60 gigawatts of electrolysis capacity to meet its 2030 target of producing 5 million metric tonnes of green hydrogen, is still in the early stages of developing its domestic industry.