Scheme Guidelines for funding of testing facilities, infrastructure
Dear Businessman/Investors,
In Series of KIP: Business and Subsidy Update, today we are going to share with you benefit of “Scheme Guidelines for funding of testing facilities, infrastructure, and institutional support for development of Standards and Regulatory framework under the National Green Hydrogen Mission “
Objects:
The objective of this scheme is to identify the gaps in the existing testing facilities for components, technologies and processes in the value chain of Green Hydrogen & its derivatives. Create new testing facilities/infrastructure to test, validate and certify components, technologies and processes being used in the value chain of Green Hydrogen & its derivatives. Upgrade existing testing facilities available with different testing agencies. Ensure safe and secure operations of equipment/instruments used in the Green Hydrogen Value Chain and to encourage participation from private as well as government entities for establishment of world class testing facilities in India.
Quantum of Assistance:
- For Government entities: MNRE will fund up to 100% of the capital cost for equipment, installation, and commissioning of the equipment.
- For Non-Government entities: MNRE will fund up to 70% of the capital cost for testing equipment, installation, and commissioning of the equipment.
Note:
- Up to 15% of the total financial support provided under the Scheme may be used for supporting operational expenses spread over a period up to 4 years from the date of completion of the project, as approved by PAC (Project Appraisal Committee).
- The grants-in-aid will be released in three (3) instalments as per table mentioned below:
Installment | Milestone | Percentage of CFA to be released |
1st instalment | On Selection | 20% |
2nd instalment | On Milestone Basis* | 70% |
3rd instalment | On completion | 10% |
| Total | 100% |
- The milestones-based disbursement of funds shall be specified in the CfP (Call for Proposals) to be issued by the SIA (Scheme Implementation agency).
- Before release of instalments of grants-in-aid claimed by Executing Agency (EA), MNRE may get the project visited and verified by SIA/ Ministry officials.
Eligible Entities:
Government organizations, private organizations/entities (including Joint Venture/Public and Private Companies/Limited Liability Partnerships, Corporate entity /Proprietorship/ Partnership Entity) intending to set up/upgrade its existing hydrogen testing or certification facility.
Implementation Methodology:
Firstly, the eligible enterprise shall be select by the SIA (Scheme Implementation agency). After that SIA will issue call for proposals in consultation with MNRE for establishment of testing facilities. The proposal shall be submitted directly to the SIA. After Submitted the proposal, the proposals will be evaluated by a Project Appraisal Committee in accordance with the criteria specified in the CfP (Call for Proposals). Selected agencies will be recommended by PAC (Project Appraisal Committee) to MNRE to issuing sanctions. The Letter of Award shall be issued to EA (Executing Agency) by SIA upon receipt of administrative sanction from MNRE.
Budgetary Outlay:
The budget outlet of this scheme is Rs. 200 Crore till FY 2025-26.
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