Role of Government Initiatives in Promoting Domestic Capabilities and Integration with Global Value Chains

1. National Hydrogen Mission

Objective and Overview:
The National Hydrogen Mission (NHM) was launched by the Indian government in 2021 with the aim of positioning India as a global leader in hydrogen production, particularly green hydrogen. This initiative focuses on developing sustainable hydrogen production, storage, and utilization technologies.

Recent Examples and Achievements:

• Green Hydrogen Policy (2022): The government has introduced the Green Hydrogen Policy to facilitate the production and utilization of green hydrogen. This policy offers incentives for renewable energy projects and aims to create a hydrogen production hub.
• Public Sector Initiatives: Major public sector enterprises like NTPC and Indian Oil Corporation have begun investing in green hydrogen projects, such as NTPC’s plans to set up a green hydrogen plant in Assam and Indian Oil’s project in Punjab.

Implications for Energy Security and Competitiveness:

• Energy Security: By promoting green hydrogen, India aims to reduce its dependency on imported fossil fuels and diversify its energy sources, enhancing national energy security.
• Competitiveness: Establishing a strong green hydrogen industry can position India as a key player in the global hydrogen economy, potentially leading to increased exports and technological advancements.

2. Production-Linked Incentive (PLI) Scheme for Solar PV Manufacturing

Objective and Overview:
The PLI scheme for solar PV manufacturing was launched in 2021 to boost domestic production of solar photovoltaic (PV) cells and modules. This initiative aims to reduce import dependency and enhance the domestic solar manufacturing sector.

Recent Examples and Achievements:

• Approval of Projects: The government approved several projects under the PLI scheme, such as those by companies like Adani Group and Tata Power Solar. These projects are expected to significantly increase the domestic production capacity.
• Investment and Growth: The scheme has attracted significant investments from both domestic and international companies, leading to the establishment of large-scale manufacturing units in India.

Implications for Energy Security and Competitiveness:

• Energy Security: By increasing domestic production of solar PV modules, India reduces its reliance on imported solar equipment, thereby strengthening its energy security and ensuring a more stable supply chain.
• Competitiveness: The PLI scheme helps in reducing the cost of solar PV modules through economies of scale, making solar energy more competitive compared to traditional energy sources and encouraging wider adoption.

Evaluation of Long-Term Implications

1. Strengthening Domestic Capabilities:

• Both initiatives contribute to the development of domestic capabilities by encouraging investment in technology and infrastructure, fostering innovation, and creating job opportunities in emerging sectors.

2. Integration with Global Value Chains:

• The National Hydrogen Mission positions India to be a part of the global green hydrogen market, potentially leading to international collaborations and trade.
• The PLI scheme enhances India’s role in the global solar supply chain, with the potential to export solar PV products and technologies.

3. Energy Security and Competitiveness:

• Energy Security: Both initiatives reduce dependency on imported energy resources, enhance resilience against global energy market fluctuations, and support a transition to cleaner energy sources.
• Competitiveness: These schemes aim to lower production costs and drive technological advancements, positioning India as a competitive player in the global energy market and promoting sustainable development.

In conclusion, the National Hydrogen Mission and the PLI scheme for solar PV manufacturing are pivotal in advancing India’s energy sector. They bolster domestic capabilities, integrate India into global value chains, and contribute significantly to long-term energy security and economic competitiveness.