Union Consumer Affairs and New and Renewable Energy Minister Pralhad Joshi on Wednesday, June 17, 2026, called on state governments to expedite their green hydrogen policy frameworks and coordinate closely with the Ministry of New and Renewable Energy (MNRE) to finalise draft policies at the earliest, underscoring the centrality of localised hydrogen infrastructure and cost reduction to India's clean energy ambitions.

Context

In his post on X, Pralhad Joshi urged states to 'fast-track their green hydrogen policies and work closely with MNRE to finalise draft frameworks at the earliest.' He identified two priorities: building 'localised hydrogen infrastructure hubs' and reducing the Levelized Cost of Hydrogen (LCOH) — a measure of the average cost of producing one kilogram of hydrogen over a project's lifetime — as prerequisites for positioning India as a global leader in the green hydrogen ecosystem.

The minister's appeal comes at a stage when several state governments are at varying stages of drafting their own green hydrogen policies to complement the national framework. The call to synchronise state-level action with MNRE signals a push for greater policy coherence across the federal structure.

Policy Backdrop

The National Green Hydrogen Mission, approved by the Union Cabinet in January 2023 with an initial outlay of Rs 19,744 crore, is India's flagship scheme to scale green hydrogen production, infrastructure, and end-use applications. The mission targets an annual green hydrogen production capacity of 5 million tonnes (MT) by 2030.

The mission sits within India's broader climate commitments: a target of 500 GW of non-fossil energy capacity by 2030 and a long-term net-zero emissions goal by 2070. Reducing the LCOH has been a core technical and policy challenge cited in official documents since the mission's launch, as green hydrogen produced via electrolysis currently remains more expensive than fossil-fuel-derived alternatives.

MNRE serves as the nodal ministry for the mission, responsible for policy coordination, incentive design, and overseeing pilot project allocations. State governments are expected to complement the central scheme through their own policies on production incentives, land allocation, and infrastructure development.

Stakeholders and Impact

State governments are the primary audience of Joshi's appeal, as their policy frameworks determine the regulatory and land-use environment in which hydrogen projects are developed. Delays at the state level can bottleneck the rollout of electrolysers, storage facilities, and distribution networks that constitute localised hydrogen hubs.

Renewable energy developers and industrial end-users — particularly in sectors such as steel, fertilisers, and heavy transport — stand to be directly affected by the pace of state-level policy finalisation. A faster, more uniform policy environment across states would reduce regulatory uncertainty and could attract greater private investment into green hydrogen projects.

Reducing the LCOH is equally critical for demand-side uptake. Until green hydrogen becomes cost-competitive with grey hydrogen (produced from natural gas), large-scale industrial substitution will remain limited, constraining the mission's impact.

What's Next

The immediate watch-point is the finalisation and formal notification of pending state green hydrogen policies, followed by the identification and allocation of pilot project sites in coordination with MNRE. Any mid-term review of the National Green Hydrogen Mission's 2030 targets will also be a key indicator of whether the pace of state-level action is sufficient to meet national goals.

If states respond to the minister's call with expedited frameworks, India could meaningfully accelerate the build-out of hydrogen infrastructure hubs — a step that analysts and policymakers regard as essential to making the country's green hydrogen ambitions commercially viable before the end of the decade.