NITI Aayog’s Saraswat Tells Andhra Pradesh to Seize $60B Green Hydrogen Incentives

India’s hydrogen production plans could hit a roadblock if state leaders drag their feet. That’s the straight talk from Dr. V.K. Saraswat, NITI Aayog member and former DRDO chief, who visited Vijayawada on September 20, 2025. He pressed the Andhra Pradesh Government to tap into those central green hydrogen subsidies—fast.

The Ask

In Vijayawada, Saraswat didn’t beat around the bush: he urged state officials to leverage the over USD 60 billion on offer from the National Green Hydrogen Mission. We’re talking capital grants, tariff breaks and tax relief to drive down costs for electrolysis plants and fuel cell systems in heavy industries.

Why It Matters

India has committed to crank out 5 million tonnes of green hydrogen by 2030 under the NGHM. Hitting that mark is huge for industrial decarbonization, potentially cutting 3.6 Gt of CO₂ by 2050 and slashing fossil-fuel imports. Andhra Pradesh, home to 52 million people with a per-capita rent of USD 1,716, boasts sunny plains and coastal breezes—ideal for powering electrolyzers.

Tech Focus

• Green Hydrogen: Zero-carbon H₂ produced by splitting water with renewable energy.
• Electrolyzers: Scale and cost improvements hinge on reliable solar and wind inputs.
• Fuel Cells: Converting stored hydrogen back into electricity for industry and transport.
• Hydrogen Infrastructure: High-pressure storage, refueling stations and logistics networks.

Strategy in Play

NITI Aayog is corralling central ministries and state agencies to fast-track clearances, grid tie-ins and land deals. The idea: stack central capex grants (₹ 1.4 lakh per kg/day capacity) with state duty waivers and shared infrastructure. AP can sweeten the pot with express approvals and co-investment in pilot hubs.

State Strengths and Gaps

AP has a 974 km coastline and over 300 GW of wind and solar potential—gold for green hydrogen production. Its industrial corridors (chemicals, fertilizers, steel) need low-carbon feedstocks. But hurdles loiter: local electrolyzer manufacturing is just budding, the grid can be rigid, and skilled talent is in short supply. Saraswat believes public-private R&D partnerships could bridge those gaps.

Maverick Take

Let’s be real: policy pep talks can only go so far. AP needs to flip the switch from feasibility studies to on-the-ground projects. One 100 MW electrolyzer plant won’t do—they need clusters linking producers, storage hubs and end users. Time’s up for planning; it’s time to break ground or watch other states zoom past.

Looking Ahead

If AP nails this, it could set the blueprint for India’s green hydrogen hubs—drawing investment, creating 600,000 clean-energy jobs by 2030 and boosting India’s global standing. If it drags its feet, Gujarat, Tamil Nadu or Maharashtra will seize the first-mover edge.

What do you think? Will Andhra Pradesh seize this moment, or will it let this hydrogen wave pass it by?