While shares of Adani Green Energy and GAIL rose, NTPC and Indian Oil Corporation fell, a day after the government announced the first part of National Hydrogen Policy.
The shares of energy companies that have or are planning to invest in green energy were trading mixed on Friday, a day after the government unveiled the first part of the much-awaited National Hydrogen Policy.
It allows free inter-state wheeling of renewable energy used in the production of green hydrogen and ammonia. The government aims to boost the use of carbon-free fuel and make India an export hub. Power and New and Renewable Energy Minister Raj Kumar Singh said the government has set a target of producing 5 million tonnes of green hydrogen by 2030.
The shares of state-run GAIL (India) rose more than a percent to Rs 141.35 whereas Adani Green Energy stock was up almost 4 percent to Rs 2128.90 on BSE in intraday trade following the announcement. Bharat Petroleum was also in the green, up 0.39 percent from its previous at Rs 374.25, and Larsen and Toubro was trading 1.16 percent higher at Rs 1888.90 at the time of writing.
However, the stocks of Indian Oil Corporation, NTPC, and Reliance Industries were in the negative territory, down 0.21 to 0.47 percent. This is amid an overall negative trend in the market.
Most renewable energy firms welcomed the government’s policy but sought clarity on charges for intra-state wheeling of electricity.
Here’s how industry experts reacted to the policy
Subramanian Sarma, L&T Hydrocarbon
: India is the world’s third-largest consumer of fossil fuels and transmission to green energy gives the country the opportunity to become self-reliant, he said.
He, however, pointed out that the cost of green hydrogen is twice the cost of conventional hydrogen. The cost of storage adds substantially to the cost of energy and now the banking facility under the government's policy will reduce that cost, he told CNBC-TV18.
Manoj K Upadhyay, founder and chairman, ACME Group: "The government has tried to address some of the key demands of the industry in terms of open access, grid banking and faster approvals for green hydrogen and ammonia projects," he said.
He called for the government to subsequently come up with policy measures for demand creation by means of mandatory green hydrogen and ammonia purchase obligations. He also suggested introducing an equivalent to PLI scheme for green ammonia to make India competitive globally, PTI reported.
ReNew Power Chief Commercial Officer Mayank Bansal: He called the policy a step in the right direction as India looks to become a net-zero economy by 2070. "The government has correctly waived inter-state transmission charges for a period of 25 years, which will help in bringing down the cost of green hydrogen,” he said.
Bansal also hailed the decision to include biomass as a fuel for generation of green hydrogen. He suggested state governments take cue from this policy and extend benefits like waiver of intra-state transmission charges and electricity duty, PTI reported.
His firm however sought more clarity on application of cross-subsidy surcharge and additional cross-subsidy surcharge since the policy allows production at different locations by different parties.
Jal Irani, Edelweiss Financial Services: He told CNBC-TV18 that India can become the Middle East of hydrogen as the cost of green hydrogen production will be significantly lower.
(With inputs from PTI)
First Published: IST