MNRE Issues Clarification on ALMM Norms for SIGHT Mode-2A, 2B Green Hydrogen Projects

In a significant move aimed at accelerating India's green hydrogen ambitions, the Ministry of New and Renewable Energy (MNRE) has issued a clarification providing conditional relief from ALMM compliance for associated renewable energy capacity.

According to an office memorandum, renewable power projects set up exclusively to supply electricity to green hydrogen and green ammonia facilities under the Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme’s Mode-2A and Mode-2B will be exempted from the requirement of using solar PV cells listed under ALMM List-II.

The exemption applies only to projects where the last date of bid submission was on or before 31 August 2025, irrespective of their date of commissioning. This includes Solar Energy Corporation of India’s (SECI) Mode-2A bids, which closed on 14 July 2025, as well as early tenders issued by Oil Marketing Companies under Mode-2B of the SIGHT Programme.

MNRE stated that the relaxation has been issued in response to representations from industry stakeholders seeking clarity on equipment sourcing norms. The exemption is limited strictly to the quantum of renewable energy required for the green hydrogen or green ammonia capacity allocated under SIGHT Mode-2A or Mode-2B.

The Ministry further clarified that the ALMM relaxations will be examined and granted on a case-by-case basis, subject to receipt of a formal request from developers and subsequent due assessment. The memorandum also noted that provisions of the Ministry’s earlier office memorandum dated 27 May 2024, relating to ALMM exemptions subject to specified conditions, shall continue to remain valid.

The clarification is expected to ease implementation challenges for early green hydrogen projects under the National Green Hydrogen Mission by removing potential equipment-sourcing bottlenecks for upstream renewable power infrastructure.