Inexperienced metal is characterised by its low carbon footprint.
A senior official, conscious of discussions mentioned, choices like “tweaking” the prevailing financing charges by banks are under-consideration too. As an example, if the rate of interest is 10 per cent, for a inexperienced metal mission, permitted underneath numerous pre-determined parameters, it might barely decrease.
“A number of Ministerial clearances are required, whereas monetary establishments should be introduced on-board too if this proposal has to undergo,” the official mentioned.
The institution of a inexperienced metal mission incorporating hydrogen expertise is often perceived as double the expense of conventional metal vegetation. Whereas the development price for a traditional metal plant with a capability of 1 million tonnes each year is estimated at $1 million, the setup price for the same inexperienced metal plant ranges $2- 2.5 million.
The Centre can be pushing for a consortium-based method to arrange metal tasks that use inexperienced hydrogen.
It has been proposed that in case of tasks which come by means of a consortium mode, or by way of business associations (whereby a number of firms can have a typical unit that can be used), funding or help may very well be as excessive as 70 per cent of the mission price (together with preparation of DPR) if it will get requisite clearances.
India’s metal sector accounts for 12 per cent of the nation’s greenhouse fuel emissions. The emission depth is 2.55 tonnes of CO2 per tonne of crude metal produced, larger than the worldwide common of 1.9 tonnes.
Pointers for pilot tasks
The Metal Ministry has been allotted ₹455 crore as a part of its share underneath the Nationwide Inexperienced Hydrogen Mission.
As per the preliminary scheme pointers, notified in February, there can be a name for proposals (pilot tasks) that can be issued by the Ministry of Metal by means of a yet-to-be-decided “scheme implementing company”, with funding accessible as much as 2029-30.
The scheme would primarily fund capital tools required to be used of hydrogen within the iron & metal manufacturing course of.
Three key areas have been recognized for the pilot tasks within the metal sector: using hydrogen within the Direct Decreased Iron-making (DRI) course of, utilizing hydrogen in blast furnaces, and steadily substituting fossil fuels with inexperienced hydrogen.
Funding permitted shall not exceed 50 per cent of the whole (mission) price, and primarily cowl capital expenditure necessities (excluding land prices, and bills referring to manufacturing of hydrogen).
Three levels
Funds can be disbursed in three levels – award of letter of contract (20 per cent), completion of particular time-bound milestones (70 per cent) and closing completion of mission (remaining 10 per cent).
Failure to finish tasks on time or diversion of funds will result in refund of whole grant.
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