India : Tariff Reduction on Machinery Import to Boost Green Hydrogen Production
The Indian government is considering reducing import tariffs on machinery crucial for green hydrogen production and lowering the GST on green hydrogen and green ammonia, currently set at 12%, for exports. These steps are part of efforts to boost green hydrogen production, which is key to decarbonizing industries like refineries and steel mills. The government may also classify green hydrogen projects under infrastructure sectors for preferential funding, aiding India’s goal of producing five million tons of green hydrogen by 2030.
To enhance its green energy goals, the government is considering lowering tariffs on imports of machinery essential for green hydrogen production. The government is evaluating the possibility of exempting certain equipment from import duties.
The government is also planning to reduce the goods and services tax on green hydrogen and green ammonia, which is currently set at 12%. However, these tax incentives would only apply to fuel produced for export, not for domestic use.
Green hydrogen, generated by utilizing renewable energy to separate hydrogen and oxygen from water, plays a central role in India’s plan to decarbonize major industries like refineries and steel mills. The country aims to ramp up its green hydrogen production from nearly zero to five million tons by 2030, aspiring to become a significant supplier in the global market.
As reported by knnindia.co.in, to further stimulate the sector’s development, the finance ministry is reportedly contemplating designating green hydrogen as part of infrastructure sectors that qualify for preferential funding terms, potentially offering additional financial support for green hydrogen projects.
Source Link : https://chemindigest.com/tariff-reduction-on-machinery-import-to-boost-green-hydrogen-production/
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