Govt. Opens Second Funding Round for Green Hydrogen Testing Facilities Under NGHM

The Ministry of New and Renewable Energy (MNRE) has invited proposals under the second round of its funding scheme for the testing facilities, infrastructure, and institutional support for the development of standards and a regulatory framework under the National Green Hydrogen Mission.

The initiative, part of the National Green Hydrogen Mission (NGHM), has an overall outlay of INR 200 crore for 2024–26 and aims to bridge infrastructure gaps in the sector.

The NGHM, launched in January 2023 with a budget of INR 19,744 crore, seeks to position India as a global leader in green hydrogen production, use, and export. Recognising that robust testing, validation, and certification are essential for safety and market acceptance, MNRE introduced this dedicated scheme in July 2024. The first round, held in August 2024, saw five proposals cleared.

The current funding round targets the creation of new testing infrastructure, the upgrade of existing labs, technology mapping, safety assurance, and fostering collaboration between government and private entities. Eligible applicants include government testing agencies, R&D institutes, academic institutions, PSUs, autonomous bodies, and consortia with private participation.

Government entities can receive up to 100 percent Central Financial Assistance (CFA) for equipment and commissioning, while private partners in consortia must provide their own infrastructure and contribute financially or technically. Up to 15 percent of the total funding can be used for operational expenses over four years, with disbursement linked to project milestones.

Projects must adhere to strict timelines of 18 months for new facilities and 12 months for upgrades with limited extensions available. Oversight will be provided by a Steering Committee chaired by the MNRE Secretary and a Project Appraisal Committee led by the NGHM Mission Director. All facilities must be open access, serving the broader industry rather than a single entity.

Proposals, following the prescribed DPR format, must reach the National Institute of Solar Energy (NISE), Gurugram, by September 10, 2025. A stakeholder meeting for clarifications is scheduled online on August 19, 2025.

This round is expected to boost India’s capacity for testing and certifying green hydrogen technologies, a critical step towards ensuring quality, safety, and global competitiveness in the emerging GH2 sector.