Page 62 - Policy Economic Report - March 2026

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

The details of projects under NGHM are given below:

i. incentives scheme for Electrolyser Manufacturing:
ii. 3000 MW per annum electrolyser manufacturing capacity has been awarded to 15 companies.
iii. Incentive schemes for Green Hydrogen production:

a. 8,62,000 Metric Tonnes per Annum (MTPA) of green hydrogen production capacity, has
been awarded to 18 companies.

iv. Demand aggregation for green ammonia:
a. Prices have been discovered by Solar Energy Corporation of India (SECI) for the
production and supply of 7,24,000 Metric Tonnes per Annum (MTPA) of Green
Ammonia (a derivative of Green Hydrogen) to 13 fertilizer units across India.

v. Demand aggregation of green hydrogen in refinery sector:

20,000 tonnes per annum of green hydrogen production and supply capacity has been awarded for
supply to the refineries of Indian Oil Corporation Ltd., Bharat Petroleum Corporation Limited and
Hindustan Petroleum Corporation Limited. Additionally, price has been discovered for production and
supply of 10,000 tonnes per annum of green hydrogen to Numaligarh Refinery Limited, Assam.

1. Pilot projects:

- Five pilot projects have been sanctioned for the use of hydrogen in the steel sector.
- V. O. Chidambaranar Port Authority has awarded a project for development of a bunkering and

refuelling facility for green methanol at the port.
- Five pilot projects have been sanctioned for deployment of 37 hydrogen - fuelled vehicles with 9

Hydrogen Refuelling Stations (HRS) along 10 different routes across India.

The investment commitments have not been made available by the project developers.

Government have taken various steps to increase adoption and expansion of city gas distribution (CGD)
network across the country which, inter-alia, includes

i. Allocating domestic gas on priority basis to Compressed Natural Gas (CNG)/ Piped Natural Gas
(PNG);

ii. Diverting domestic gas from non-priority sectors to meet the requirement for CNG/ PNG sector
iii. Expansion of CGD network, grant of Public Utility Status to CGD project
iv. Grant of Public Utility Status to CGD projects;
v. Notification for supply of domestic gas through available mode (including cascade mode) for

CNG/PNG purpose, allocating domestic natural gas for CNG and PNG segments on a two-quarter
advance basis, expansion of National Gas Grid Pipeline;
vi. Setting up of Liquefied Natural Gas (LNG) Terminals;
vii. Sustainable Alternative Towards Affordable Transportation (SATAT) initiatives to promote Bio-
CNG, etc.
viii. The government has also notified that gas produced from discoveries in Deepwater, Ultra
Deepwater and High Pressure-High Temperature areas, in any situation which may require

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