MUMBAI (ICIS)–India will launch a national
infrastructure plan worth rupees (Rs) 100tr
($1.35tr) to boost industry productivity, as
well as help the country achieve its climate
goals by increasing production and use of clean
fuels like hydrogen.
The infrastructure plan, named ‘Gati Shakti’
“will be a national infrastructure master plan
for our country which will lay the foundation
of holistic infrastructure and will lead to an
integrated and holistic pathway to our
economy,” Prime Minister Narendra Modi said in
a national address on the occasion of India’s
75th year of Independence on 15 August.
The national master plan is expected to provide
multi-modal connectivity across the country
which will cut travel time and increase
industry productivity, Modi said, adding that
this would improve the global outreach of
domestic manufacturers and would also help
develop new economic zones in the country.
In the national budget setting in February,
Finance Minister Nirmala Sitharaman had
announced that nearly 7,400 projects were under
various stages of implementation as part of the
National Infrastructure Pipeline (NIP).
The NIP involves the construction of several
infrastructure projects in India over a period
of five years starting 2019.
The government has set a target of constructing
12,000 kilometres of national highways in
2021-22.
As of end-March 2021, work on 2108 highway
projects with a total length of 64,010 km were
ongoing according to the Ministry of Road
Transport and Highways.
In the current fiscal year, the government has
provided the highest-ever allocation from its
budget to the ministry at Rs1.18tr.
Rail transport will also receive a major boost
with the ministry of railways planning to
enhance rail infrastructure, especially in
northeast India.
The government has also announced various
projects as part of its Sagarmala project to
develop sea infrastructure. Through the ongoing
project, announced in 2015, the government aims
to modernize the ports and integrate them with
special economic zones, build port-based smart
cities, industrial parks, warehouses and
transport corridors.
The government is also focusing on the textile
sector and had announced investment plans to
set up seven textile parks over the next three
years in the Union Budget in February.
CLEAN ENERGY AMBITION
As part of India’s bid to become self-reliant
in its energy needs and enhance the use of
clean energy, the government has also launched
the National Hydrogen Mission. The hydrogen
mission was first announced in this year’s
Union Budget.
India currently spends more than Rs12tr
annually on energy imports and becoming energy
independent is important, Modi said in his
address.
“For India to be self-reliant it is imperative
that it becomes energy independent. India will
become energy independent by its 100th
Independence Day,” he added.
“Green hydrogen is the future of the world.
Today, I announce the setting up of the
National Hydrogen Mission with the aim of
becoming the new global hub of green hydrogen,
and also its largest exporter,” he said.
The Indian industry has supported this push for
increased use of clean fuel and a few of them
have announced hydrogen production projects.
Reliance Industries Ltd recently announced
hydrogen plans as part of the company’s move to
become a net carbon-zero firm by 2035.
In March, Adani Group had announced a
partnership with Maire Tecnimont to develop
green hydrogen projects in India.
Indian Oil Corp (IOC) plans to build a green
hydrogen plant at its Mathura refinery in Uttar
Pradesh.
State-owned NTPC, India’s largest power
generating company, has also announced plans to
set up India’s first green hydrogen fueling
station at Leh in the northern union territory
of Ladakh.
NTPC has also floated a global expression of
interest (EoI) to set up a pilot project on
hydrogen blending with natural gas in city gas
distribution network.
The pilot project will be the first of its kind
in the country and will explore the viability
of decarbonising the natural gas grid,
India’s Ministry of Power said on 14 August.
As per a draft note from the Ministry of New
and Renewable Energy, fertilizer plants and oil
refineries may have to use green hydrogen to
meet 0.15%
of their total hydrogen requirements from
2023-24 onward.
Focus article by Priya Jestin
($1 = Rs 74.25)
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