India is betting big on green hydrogen, and the numbers are hard to ignore. Under the National Green Hydrogen Mission, the government has set a target of producing 5 million metric tonnes annually by 2030. The plan is backed by an estimated ₹8 lakh crore in investments. This is not just an energy plan. It is a structural shift in how India powers its industries, refineries, and exports.
As pilot projects move into execution mode, a new set of infrastructure and energy companies is emerging at the center of this transition.
National Green Hydrogen Mission Gains Pace
Launched in 2023, the National Green Hydrogen Mission aims to make India a global hub for production, usage, and export of green hydrogen and its derivatives.
The headline targets are clear:
-
5 million metric tonnes annual production by 2030
-
Over ₹8 lakh crore in total investment potential
-
Large scale domestic electrolyser manufacturing
-
Export capability for green ammonia and green hydrogen
Government incentives are being rolled out under production linked schemes for electrolyser manufacturing and hydrogen production.
The strategy is twofold.
First, reduce dependence on imported fossil fuels.
Second, build a domestic manufacturing ecosystem that creates jobs and export revenue.
According to official updates, pilot projects are already underway in ports, refineries, and industrial clusters. The economics remain evolving, but falling renewable power costs are improving viability.
L&T Anchors the Infrastructure Buildout
Larsen & Toubro is positioning itself as a key engineering backbone for India’s hydrogen push.
Through its clean energy and green hydrogen initiatives, L&T is working on electrolyser manufacturing, engineering procurement construction projects, and integrated hydrogen facilities.
The company has announced plans to set up electrolyser manufacturing capacity in India. It has also partnered with global technology providers to scale hydrogen solutions.
Why this matters:
-
Hydrogen projects require complex engineering and heavy infrastructure
-
Electrolyser manufacturing is capital intensive
-
Integrated plants demand system design expertise
L&T’s diversified presence across power, heavy engineering, and construction makes it a natural player in large hydrogen projects.
For investors, L&T offers exposure to hydrogen without being dependent on a single project outcome.
NTPC Drives Renewable Powered Hydrogen
NTPC Limited is leading the renewable integration side of the hydrogen chain.
Green hydrogen requires renewable electricity, typically solar or wind powered, to split water through electrolysis.
NTPC has already commissioned pilot green hydrogen projects and is working on blending hydrogen into natural gas networks.
The company’s strategy includes:
-
Utility scale renewable capacity expansion
-
Green hydrogen production at thermal and renewable sites
-
Potential green ammonia production for export
NTPC’s scale gives it a cost advantage.
As renewable tariffs decline, hydrogen production costs could improve significantly over the next five years.
For investors, NTPC represents exposure to both renewable energy and hydrogen production.
Reliance Industries Bets on Green Energy Hub
Reliance Industries has announced ambitious plans to build a fully integrated new energy ecosystem.
The company is investing in solar manufacturing, battery storage, and green hydrogen production at scale.
Its Jamnagar complex is expected to become a major new energy hub, integrating renewable power and hydrogen production.
Reliance’s strategy focuses on:
-
Large scale electrolyser manufacturing
-
Backward integration into solar modules
-
Green hydrogen and green ammonia exports
Reliance’s financial strength allows it to invest aggressively in new technologies.
If hydrogen economics improve, the company could become a major global exporter.
Indian Oil and Fertiliser Linkages
Green hydrogen is not just about power generation. It has immediate applications in refining and fertilisers.
Indian Oil Corporation is piloting green hydrogen plants at its refineries.
Refineries already use hydrogen in processing crude oil. Replacing grey hydrogen with green hydrogen reduces carbon emissions significantly.
Similarly, fertiliser companies stand to benefit.
Gujarat Narmada Valley Fertilizers & Chemicals has exposure to ammonia production, which can shift toward green ammonia over time.
Here is how these segments connect:
| Segment | Role in Green Hydrogen Chain |
|---|---|
| Infrastructure | Electrolyser manufacturing and EPC |
| Renewable Power | Electricity input for electrolysis |
| Refineries | Industrial hydrogen consumption |
| Fertilisers | Ammonia production |
This layered ecosystem reduces concentration risk.
Instead of betting on one niche, investors can spread exposure across production, equipment, and end use.
Economics Still Evolving But Direction Clear
Green hydrogen remains costlier than conventional hydrogen.
However, three factors are improving the outlook:
-
Falling renewable energy costs
-
Domestic manufacturing incentives
-
Global demand for low carbon fuels
India also aims to become an export hub for green ammonia, especially to markets like Europe and Japan that are tightening carbon norms.
Capital commitments are rising.
Public sector companies and private conglomerates are both investing in pilot projects and capacity expansion.
The sector is early stage, but policy backing and capital allocation suggest a long term structural theme.
Risks Investors Should Track
No transition is without challenges.
Key risks include:
-
Delays in project execution
-
Slow cost reduction in electrolysers
-
Policy shifts or global demand uncertainty
Investors should also monitor global hydrogen prices and technological advancements.
The space may remain volatile in the short term.
But the direction appears consistent with India’s broader energy transition strategy.
India’s ₹8 trillion green hydrogen pivot signals a long term shift in infrastructure, manufacturing, and energy consumption. Companies like L&T, NTPC, Reliance Industries, Indian Oil, and GNFC reflect different layers of this emerging supply chain. While the sector is still evolving, capital commitments and policy support indicate that hydrogen will play a meaningful role in India’s energy future. What is your view on India’s green hydrogen mission and these infrastructure stocks? Share your thoughts in the comments.
