Why in News?

• India achieved a record-low price of ₹55.75/kg for Green Ammonia

  • This happened during the first SECI auction under Mode-2A of the SIGHT Scheme

  • Marks a major milestone under the National Green Hydrogen Mission

About the SIGHT Scheme (Strategic Interventions for Green Hydrogen Transition)

What is it?

• A flagship financial scheme under the National Green Hydrogen Mission

• Aims to drive India’s transition to a green hydrogen economy

Implemented by

• Ministry of New and Renewable Energy (MNRE)

• In collaboration with Ministry of Petroleum and Natural Gas (MoPNG)

Objectives of SIGHT

• Scale up production and usage of green hydrogen in India

• Make green hydrogen cost-competitive with fossil fuels

• Create domestic demand across sectors

  • Fertilisers

  • Refining

  • Mobility

Modes of Implementation

• Mode 1

• • Incentives awarded to developers seeking the lowest support per kg of green hydrogen

• Mode 2A

• • Fixed incentive for aggregated demand for Green Ammonia

• Mode 2B

• • Fixed incentive for aggregated demand for Green Hydrogen

Key Features of the SIGHT Scheme

Total Outlay

• ₹19,744 crore under the National Green Hydrogen Mission

• ₹17,490 crore allocated specifically for the SIGHT component

Incentive Rates (Mode 2B)

• ₹50/kg (Year 1)

• ₹40/kg (Year 2)

• ₹30/kg (Year 3)

  • Helps reduce costs and support early adoption

Bidding Process

• Conducted by SECI and Oil PSUs

• Reverse auction model used to select lowest bidders and aggregate demand

Standard Compliance

• Only hydrogen that meets official “Green Hydrogen” standards is eligible

Monitoring Mechanism

• Joint MNRE–MoPNG committee oversees implementation and compliance

About Green Ammonia – First SECI Auction (Mode 2A)

What is Green Ammonia?

• Ammonia (NH₃) produced using green hydrogen

  • Green hydrogen is generated from renewable energy through electrolysis

• Used in sectors like

  • Fertilisers

  • Shipping fuel

  • Chemicals

Auction Highlights (Mode-2A)

• Winning Price: ₹55.75/kg (approx. USD 641/MT) – record low

• Offtaker: Paradeep Phosphates Ltd., Odisha

• Quantity Awarded: 75,000 MTPA out of total 7.24 lakh MTPA tendered

• Contract Term: Fixed 10-year supply agreement

Significance of the Auction

• Promotes clean fertiliser transition

• Reduces reliance on ammonia imports

• Attracts long-term private investment in the green hydrogen ecosystem

• Strengthens India’s position as a future exporter of green ammonia