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UP Green Hydrogen Policy 2024: Complete Guide

4 Centres of Excellence for R&DCapital + Land Subsidy, SGST ReimbursementUPNEDA Nodal AgencyLast reviewed: Aug 2026

What Is the Policy?

The Uttar Pradesh Green Hydrogen Policy, 2024 is a sector-specific incentive policy for green hydrogen and derivative (green ammonia, green methanol) production, and for electrolyser and associated equipment manufacturing. It is administered by the Additional Sources of Energy Department through the UP New and Renewable Energy Development Agency (UPNEDA).

The policy exists because Uttar Pradesh already has a captive market for hydrogen: current demand in the state is about 0.9 million metric tonnes per annum, used mainly by the fertiliser and refinery sectors โ€” industries that can switch to green hydrogen without waiting for new offtake to be built, unlike most other states.

Key Incentives

WhatDetails
Capital subsidyFor green hydrogen/derivative production and electrolyser manufacturing units
Land subsidyOn project land
Electricity dutyExemption
Transmission & wheeling chargesConcessional, with open access facilitation for renewable power
Water chargesConcessional
SGSTReimbursement
Centres of ExcellenceProvision for 4, for R&D and technological innovation
Please verify: The policy's own FAQ source does not publish exact subsidy percentages or caps for these heads โ€” confirm every rate, cap and threshold against the notified policy and latest Government Order before relying on it. See the complete UP Green Hydrogen Policy FAQ for the fully sourced detail behind these incentives.

How Does This Fit With the National Green Hydrogen Mission?

These state incentives are additional to the Central government's SIGHT programme incentives for electrolyser manufacturing and hydrogen production โ€” a project can stack both.

Where Do Projects Make the Most Sense?

Two locations stand out: near UP's existing refinery and fertiliser demand centres (for offtake), and near renewable power generation in Bundelkhand (for cheap, additional renewable electricity to run the electrolysers).

Who Is This For?

How to Apply

  1. Confirm your project fits under production, or electrolyser/equipment manufacturing
  2. Approach UPNEDA / the Additional Sources of Energy Department as the nodal point
  3. Line up offtake contracts in parallel โ€” see the honest caveat below before you finalise a DPR around incentive value alone
Practical advice: this is an early-stage sector nationally, not just in UP. Offtake contracting โ€” not the incentive quantum โ€” is what determines bankability here. Don't build a project financial model around the subsidy; build it around a signed or credible offtake commitment, then treat the subsidy as upside.

Frequently Asked Questions

Can this policy's incentives be combined with central incentives?

Yes โ€” the state incentives here are additional to the Central SIGHT programme incentives for electrolyser manufacturing and hydrogen production.

Why does Uttar Pradesh specifically have an edge in green hydrogen?

The state already consumes about 0.9 million metric tonnes of hydrogen a year, mostly in fertiliser and refining โ€” a rare existing offtake base that most states don't have, which is what the policy is built around.

Need help with your UP Green Hydrogen Policy application?

ClaimDesk (A NorthStar Advisors brand, Noida) helps you confirm eligibility, work out the applicable incentive heads, and put together the application for UPNEDA. The first conversation is completely free.

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MSMEUP.com is independent information & tools โ€” free, and not run by any consultancy. ClaimDesk is a separate, private consultancy (a NorthStar Advisors brand) for those who want professional filing help; its fee is for that service, not a government charge, and using it is entirely optional โ€” MSMEUP's guides and tools work the same with or without it.

Official Source
Official portal: upneda.org.in Administered by: Additional Sources of Energy Dept. / UPNEDA Last reviewed: Aug 2026

This page summarizes publicly available scheme information. For the current official notification, application form and exact eligibility conditions, always confirm on the portal above before applying or filing a claim.