India will waive transmission fees for renewable power, to hydrogen manufacturing plants commissioned before January 2031.
According to industry estimates, renewable energy, including transmission, makes up 65%-70% of the cost of producing green hydrogen.
The move is expected to cut the cost of green hydrogen by a fifth. Additionally, it will make more green hydrogen manufacturing projects eligible for the 25-year waiver of transmission charges, previously available for projects set up before July 2025. Building large-scale hydrogen and ammonia projects takes three to four years, and it was unlikely many would be commissioned by June 2025, according to an official in the government.
India aims to produce green hydrogen at the lowest rate in the world: at $1-$1.50 per pound down from the present $4-$5 per pound.
The country’s hydrogen mission is estimated to require investments worth $98 billion by 2030, including 125 gigawatts of non-fossil-based generation capacity and new transmission lines.
India also plans to give green hydrogen producers incentives worth at least 10% of their costs under a $2 billion incentive program set to begin before the end of June.
Last updated: December 26th, 2025
