Why in News At the CII Annual Business Summit 2026 held in New Delhi (May 11-12, 2026), Shaktikanta Das, Principal Secretary to the Prime Minister (former RBI Governor 2018-2024), flagged bioenergy and green hydrogen as the Government’s two top energy-transition priorities during his keynote on May 11, 2026. The pivot comes against a backdrop of Strait of Hormuz tensions, elevated crude (WPI fuel +24.71 per cent YoY for April 2026), and the work of the 5th Informal Empowered Group of Ministers (iEGoM) on energy supply-chain disruption, chaired by Defence Minister Rajnath Singh.
The Pivot Explained
| Pillar | Programme | Outlay / Target |
|---|---|---|
| Green Hydrogen | National Green Hydrogen Mission (NGHM) | Rs 19,744 crore; 5 MMT/year by 2030 |
| Bioenergy | National Bioenergy Programme (CBG, biomass, biodiesel) | ~Rs 800-1,000 crore/year + SATAT offtake guarantees |
| Cross-cutting | iEGoM Energy Supply Chain | Strategic stockpiles, alternative crude routes, SPR Phase II |
The thesis: with crude exposed to West Asia disruption, India must accelerate indigenous fuel substitution – bioenergy for transport and feedstock, green hydrogen for industry.
National Green Hydrogen Mission – Architecture
| Parameter | Value |
|---|---|
| Cabinet approval | launched in 2023 (specifically January 4, 2023) |
| Outlay | Rs 19,744 crore (FY 2023-24 to 2029-30) |
| Production target by 2030 | 5 million metric tonnes (MMT) of green hydrogen |
| Renewable capacity addition target | 125 GW |
| Estimated investment | Rs 8 lakh crore |
| Estimated job creation | 6 lakh+ |
| Implementing Ministry | Ministry of New and Renewable Energy (MNRE) |
| Implementing agency for SIGHT | Solar Energy Corporation of India (SECI) |
What Is Green Hydrogen?
| Type | Production method |
|---|---|
| Grey hydrogen | Steam Methane Reforming (SMR) of natural gas – the current global default |
| Blue hydrogen | SMR + Carbon Capture, Utilisation and Storage (CCUS) |
| Green hydrogen | Electrolysis of water using renewable electricity – zero direct CO2 |
| Turquoise hydrogen | Methane pyrolysis with solid carbon as by-product |
SIGHT – Flagship Sub-Scheme
Strategic Interventions for Green Hydrogen Transition has two components:
- SIGHT Mode 1: Incentives for electrolyser manufacturing (3,000 MW capacity target by 2026; 8,000 MW by 2030)
- SIGHT Mode 2: Incentives for green hydrogen production – Rs 50/kg in Year 1, Rs 40 in Year 2, Rs 30 in Year 3
Progress Snapshot (as of 2026)
- Installed green-hydrogen production capacity: ~8,000 tonnes/year
- Bids awarded for electrolyser manufacturing: ~2,000 MW (Reliance, Adani, L&T, Ohmium, BHEL among awardees)
- Pilot Projects: Steel (Tata Steel, SAIL); Shipping (Cochin Shipyard); Heavy Mobility (NTPC at Leh); Refining (IOCL Panipat)
- Green Hydrogen Hubs: Kandla, Tuticorin, Paradip notified as initial hubs (under MoPSW)
SATAT and the National Bioenergy Programme
SATAT – Sustainable Alternative Towards Affordable Transportation, launched October 1, 2018 by MoPNG.
SATAT Architecture
- Long-term offtake guarantee (15+ years) from oil-marketing PSUs (IOCL, BPCL, HPCL)
- Per-unit pricing linked to a fixed reference, indexed to CNG retail
- Letters of Intent (LoIs): ~5,000+; CBG plants commissioned by 2026: 100+
- Target: 5,000 CBG plants producing 15 MMT/year of CBG
Feedstocks
- Agricultural residue (paddy straw, sugarcane bagasse, cotton stalk)
- Cattle dung; sewage sludge; press-mud from sugar mills
- Municipal solid waste (organic fraction)
National Bioenergy Programme (MNRE)
- Phase I (2021-22 to 2025-26): Rs 858 crore
- Three sub-schemes: Waste-to-Energy, Biomass Programme (BPDB), Biogas Programme
Ethanol Blending Programme (EBP) – complementary
- EBP target: 20 per cent (E20) by 2025-26
- Achieved blending: ~14-15 per cent through 2025-26
- 2G ethanol plants (e.g., IOCL Panipat) use agricultural residue
- The Pradhan Mantri JI-VAN Yojana (2019) supports 2G ethanol
Biodiesel and SAF
- Biodiesel from non-edible oilseeds (jatropha, karanja, mahua, neem)
- B20 target: 5 per cent blend by 2030
- Sustainable Aviation Fuel (SAF): Indigo, Air India flew limited SAF flights from 2024
- ICAO CORSIA offset framework applicable from 2027 (mandatory phase)
The 5th iEGoM and Energy Crisis Management
- Informal Empowered Group of Ministers (iEGoM) is convened to handle inter-ministerial coordination on energy supply
- Chaired by Defence Minister Rajnath Singh
- Membership: MEA, MoF, MoP&NG, MNRE, MoPSW, Cabinet Secretariat
- Mandate: contingency plans for Strait of Hormuz disruption; SPR drawdown protocols; alternative crude sourcing
Indian Energy Mix – Context
| Source | Approx. share of primary energy |
|---|---|
| Coal | ~55 per cent |
| Oil (mostly imported) | ~28 per cent |
| Natural Gas | ~6 per cent |
| Renewables + Nuclear + Hydro | ~10-11 per cent |
The Government’s pivot is to expand the last category – of which bioenergy and green hydrogen are the most domestically resilient options.
Strategic Implications
Energy Security
- Bioenergy substitutes imported petroleum and LNG with domestic biomass and waste
- Green hydrogen replaces imported grey hydrogen in refining and fertiliser; long-term replaces coking coal in steel-making
- Both reduce exposure to Strait of Hormuz disruption
Climate
- India’s NDC commitments: 50 per cent non-fossil capacity by 2030; 45 per cent emission-intensity reduction (vs 2005); net-zero by 2070
- Green hydrogen is the principal route for hard-to-abate sectors (steel, fertiliser, refining, shipping)
Industrial Policy
- Electrolyser manufacturing creates a domestic supply chain
- 2G ethanol valorises agri-waste, addressing both paddy-stubble burning and farm income
Fiscal
- Capital subsidies and PLIs are sizeable; fiscal calendar must accommodate them
- Crude-substitution dividends accrue in foreign-exchange savings (every USD 10/bbl cut in import bill = ~USD 13 billion)
UPSC Relevance
GS Paper 3 – Environment, Energy, S&T
- Renewable energy missions; green hydrogen and bioenergy
- Energy security and import substitution
- Climate commitments and NDCs
GS Paper 2 – Policies and Schemes
- Inter-ministerial coordination; iEGoM model
- Centrally Sponsored vs Central Sector schemes
Mains Angles
- Discuss the National Green Hydrogen Mission and the SIGHT scheme. Why is green hydrogen central to India’s hard-to-abate decarbonisation?
- Evaluate SATAT and the National Bioenergy Programme as instruments of farmer income, energy security and climate action.
- The Government has flagged bioenergy and green hydrogen as the principal energy-transition priorities. Examine the rationale in light of West Asia geopolitics.
Facts Corner – Knowledgepedia
National Green Hydrogen Mission (NGHM): Approved since 2023 (specifically January 4, 2023); outlay Rs 19,744 crore; target 5 MMT/year by 2030; 125 GW associated RE capacity.
SIGHT: Strategic Interventions for Green Hydrogen Transition – flagship sub-scheme; two components (electrolyser manufacturing; green hydrogen production).
SATAT: Sustainable Alternative Towards Affordable Transportation; launched October 1, 2018 by MoPNG; promotes Compressed Bio-Gas (CBG).
PMJI-VAN Yojana: Pradhan Mantri Jaiv Indhan – Vatavaran Anukool Fasal Awashesh Nivaran Yojana (2019); supports 2G ethanol plants from agri-residue.
Ethanol Blending Programme (EBP): Target E20 by 2025-26; achieved ~14-15 per cent.
5th iEGoM: Informal Empowered Group of Ministers on energy supply chain; chaired by Defence Minister Rajnath Singh; convened on West Asia disruption.
India’s NDCs (updated 2022): 50 per cent non-fossil installed capacity by 2030; 45 per cent emissions-intensity reduction (vs 2005); net zero by 2070.
National Solar Mission: Launched 2010 under JNNSM; target now 280 GW solar by 2030.
Energy Mix: Coal ~55 per cent; oil ~28 per cent; gas ~6 per cent; renewables ~10 per cent of primary energy.
Shaktikanta Das: RBI Governor December 2018-December 2024; thereafter Principal Secretary to the Prime Minister.
CII Annual Business Summit 2026: New Delhi, May 11-12, 2026; key Government-industry interface. Shaktikanta Das delivered the keynote on May 11, 2026.
