- By Akansha Pandey
- Thu, 20 Nov 2025 03:59 PM (IST)
- Source:Jagran News Network
As the push for energy self-reliance accelerates, green hydrogen is rapidly gaining ground across India. While several states have already formulated policies to boost production, Uttarakhand—known as the energy state—is set to introduce its own Green Hydrogen Policy. However, the state faces the dual challenge of not only formulating a robust policy but also competing with larger states that have already established a strong foothold in the sector.
The Competitive Landscape
Uttarakhand faces stiff competition from states like Rajasthan, Maharashtra, and Andhra Pradesh, which have become attractive destinations for investors due to heavy subsidies and favorable industrial infrastructure.
To effectively compete, Uttarakhand’s policy framework will need to address three critical areas:
1. Attracting Investment
To overcome geographical complexities and draw investor interest, the state must offer competitive financial incentives. This includes strengthening provisions for:
- Capital investment subsidies.
- Tax relief.
- Concessions on electricity duty.
2. Logistics And Infrastructure
Unlike Maharashtra and Andhra Pradesh, which benefit from industrial corridors and seaports, Uttarakhand lacks a pipeline network and large-scale storage plants. Consequently, the new policy must prioritise the development of logistical infrastructure to support the movement and storage of green hydrogen.
3. Generating Industrial Demand
A major hurdle for Uttarakhand is the limited presence of heavy industries, which are the primary consumers of green hydrogen. To counter this, the state needs to create local demand through alternative measures, including:
- Promoting fuel cell-based public transport.
- Providing incentives for small industries to adopt clean fuel.
- Developing dedicated Green Industrial Parks.
Official Status
According to R Meenakshi Sundaram, Principal Secretary for Energy, the draft of the hydrogen policy is ready and will soon be presented to the cabinet for approval.
Benchmark: Existing Policies In Other States
To position itself successfully, Uttarakhand will need to match or exceed the benchmarks set by its competitors:
Rajasthan
- Target: Production of 2,000 kilo-tonnes per annum by 2030.
- Incentives: 50 per cent discount on transmission and distribution fees for 10 years; 30 per cent grant for research centres.
Maharashtra
- Target: Production of 500 kilo-tonnes per year by 2030.
- Incentives: Financial incentives worth Rs 8,562 crore; exemption from electricity duty; waiver on transmission-wheeling charges.
Andhra Pradesh
- Target: Production of 1.5 million tonnes per year through the creation of a Green Hydrogen Valley.
- Incentives: Provision for 5 gigawatts of electrolyser manufacturing capacity; capital subsidy on desalination plants.
Uttar Pradesh
- Target: Production of 1 million metric tonnes per year by 2028.
- Incentives: 30–40 per cent capital subsidy; exemption from electricity duty and transmission-wheeling charges for 10 years.