MNRE Introduces Mode 2A Incentive Scheme to Fast-track Green Ammonia Production
INR 17,490 crore, has been earmarked for Component II: Incentive Scheme for Green Ammonia Production and Supply under Mode 2A.
January 17, 2024. By Abha Rustagi
A major portion of this budget, INR 17,490 crore, has been earmarked for Component II: Incentive Scheme for Green Ammonia Production and Supply under Mode 2A.
The primary objective of this initiative is to bolster the production of Green Ammonia within the country, aiming to enhance its cost competitiveness in comparison to fossil-based alternatives while promoting large-scale utilization. The funding for this project will be sourced from the National Hydrogen Mission Head's budget.
Leading the implementation efforts is the Ministry of New and Renewable Energy (MNRE), with the Solar Energy Corporation of India Limited (SECI) serving as the implementing agency. SECI's role will be crucial in aggregating demand, initiating a competitive bidding process, and overseeing the production and supply of Green Ammonia.
Under Mode 2A of the scheme, SECI will conduct a competitive bidding process, ensuring the production and supply of Green Ammonia at the most competitive rates. The selection process will be transparent, subject to rigorous scrutiny by MNRE, and executed by SECI.
Incentives will be directly provided to successful bidders in terms of INR/kg of Green Ammonia produced and supplied over a three-year period. The incentive amounts are set at INR 8.82/kg in the first year, INR 7.06/kg in the second year, and INR 5.30/kg in the third year.
The selection process for beneficiaries will involve competitive bidding, with the least quoted price being a crucial determining factor. The bidder's net worth, capacity quoted for Green Ammonia supply, and adherence to specified criteria are essential elements in the selection process.
SECI has the authority to specify minimum and maximum capacity limits, and any unallocated capacity may be carried over to the next tranche. The allocated capacity remains constant over three years, with incentives disbursed annually based on successful bidder claims.
To ensure transparency and oversight, a Scheme Monitoring Committee (SMC) will monitor the implementation and performance of Green Ammonia production and supply capacities.
The MNRE retains the authority to amend the Scheme Guidelines with the approval of the Minister of New and Renewable Energy as needed.
please contact: contact@energetica-india.net.
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