Page 64 - Policy & Economic Report - July 2025

July 2026 POLICY AND ECONOMIC
ROEILPO&RGTAS MARKET

licensees and their employees. Further, all distribution licensees will continue to be bound by the
universal service obligation under the Electricity Act, and the regulatory framework will prevent
selective supply only to profitable consumers.

Emphasizing the consumer-centric nature of the reform, Shri Manohar Lal stated that consumers
would have the freedom to choose their electricity supplier, similar to the choices available today in
sectors such as telecommunications and aviation. Increased competition is expected to encourage
better consumer service, improved reliability, greater innovation and operational efficiency, while
ensuring optimal utilization of existing infrastructure and avoiding unnecessary expenditure.

The Minister noted that the concept is not new to India and has been successfully implemented in
Mumbai for several years, where consumers have exercised supplier choice while the distribution
network continues to be developed in a coordinated manner under the supervision of the State
Electricity Regulatory Commission.

9. India Advances Global Green Hydrogen Leadership under National Green Hydrogen Mission

In a significant milestone under the National Green Hydrogen Mission (NGHM), ACME Cleantech
Solutions Private Limited (ACME Group) secures long-term offtake deal with leading Japanese
companies—IHI Corporation for Green Ammonia and Mitsubishi Gas Chemical Company, Inc. (MGC)
for Green Methanol during a ceremony held at Atal Akshay Urja Bhawan, New Delhi.

The National Green Hydrogen Mission, approved in January 2023 with an outlay of ?19,744 crore,
aims to position India as a global hub for the production, utilisation, and export of green hydrogen
and its derivatives. Under the Mission, the Strategic Interventions for Green Hydrogen Transition
(SIGHT) Programme provides financial support for production through a transparent bidding process
conducted by the Solar Energy Corporation of India (SECI). ACME Group has been awarded a
production capacity of 3,70,000 tonnes per annum (370 kTPA) under the SIGHT Programme, forming
the foundation for these export-oriented agreements.

Under the deal with IHI Corporation, ACME will supply a total of 4,05,000 tonnes per annum (405
kTPA) of green ammonia. This arrangement is supported by Japan’s Contract for Difference (CfD)
scheme for low-carbon ammonia, administered by METI, which provides price support to Japanese
off-takers, thereby ensuring the long-term commercial viability of such imports.

ACME has also signed a 10-year agreement with Mitsubishi Gas Chemical Company, Inc. for the supply
of 1,00,000 tonnes per annum (100 kTPA) of green methanol from its Paradip facility. The project is
aligned with global decarbonisation goals, particularly in the maritime sector, and is designed to meet
European Renewable Fuels of Non-Biological Origin (RFNBO) requirements as well as International
Maritime Organization (IMO) standards for cleaner marine fuels.
“I welcome Japan's decision to extend its CfD subsidy support to the ACME-IHI Green Hydrogen
project. It reflects the growing global confidence in India's green hydrogen ecosystem and our

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