MNRE Increases Funding for Fertilizer Sector under SIGHT Programme

The Mministry of new and renewable energy (MNRE) is spearheading the national green hydrogen mission (NGHM), aiming to achieve a production capacity of five million tons of green hydrogen per year by 2030.

As part of the mission, MNRE issued guidelines on January 16, 2024, for the implementation of the SIGHT Programme – Component II: incentive for procurement of green ammonia production (under mode 2A), which focuses on the fertilizer sector.

According to the guidelines, the initial capacity available for bidding under tranche I of mode 2A was set at 550,000 tonnes of green ammonia per year. Subsequently, the Solar Energy Corporation of India (SECI) released a Request for Selection (RfS) to identify green ammonia producers through a cost-based competitive bidding process.

With the growing momentum of the mission, the demand for green hydrogen and its derivatives across various sectors has been increasing. In response to the rising demand for green ammonia in the fertilizer sector, MNRE has decided to amend the guidelines from January 16, 2024.

Also Read |   Sulzer Expands Bioplastics Portfolio with Biodegradable Polymer

As reported by pib.gov.in, the allocation under the mode 2A scheme for the fertilizer sector has been increased by 2,00,000 tons per year, raising the total allocation from 5,50,000 tons to 7,50,000 tons per year. This adjustment marks a significant step towards fostering demand for green hydrogen and its derivatives within the country.