Bhubaneswar, 12/1 : In a transformative move to position the state as the renewable energy capital of Eastern India, the Odisha Cabinet, chaired by Chief Minister Mohan Charan Majhi, has approved the comprehensive “Odisha Green Hydrogen and Renewable Energy Policy 2026.” The landmark decision, taken earlier today at the Lok Seva Bhawan, outlines an aggressive roadmap to attract over ₹2 lakh crore in investments and generate approximately 50,000 direct and indirect jobs over the next five years.
The new policy framework is designed to capitalize on Odisha’s strategic advantages—its long coastline, established industrial ecosystem, and major ports like Paradip, Dhamra, and Gopalpur—to create a robust export-oriented Green Hydrogen/Ammonia ecosystem.
Key Policy Highlights and Incentives
Briefing the press after the cabinet meeting, Deputy Chief Minister and Energy Minister K.V. Singh Deo termed the policy a “game-changer” for industrial decarbonization. The policy introduces a slew of fiscal and non-fiscal incentives aimed at reducing the cost of green hydrogen production, making it competitive with grey hydrogen.
Industrial Clusters: The state will develop dedicated Green Hydrogen Hubs in Paradip and Gopalpur. These zones will be equipped with common infrastructure for storage, bunkering, and transmission.
Land and Stamp Duty: Developers will be allotted government land at concessional industrial rates. The policy guarantees a 100% exemption on stamp duty for land registration and lease deeds for Green Hydrogen and RE manufacturing units.
Power Incentives: To ensure low-cost renewable power—the most critical component of Green Hydrogen production—the policy offers a 100% waiver on electricity duty for a period of 20 years. Furthermore, there will be a 50% to 100% exemption on wheeling and transmission charges for intra-state open access power, depending on the project commissioning timeline.
Capital Subsidy: A capital subsidy of up to 30% on the cost of plant and machinery will be provided for the first five anchor projects to encourage early adoption.
Manufacturing Boost: Special Production Linked Incentives (PLI) have been structured for the manufacturing of electrolyzers and other critical RE components within the state.
Strategic Vision and Targets
The policy aligns with the National Green Hydrogen Mission and sets a state-specific target of producing 1 Million Metric Tonnes Per Annum (MMTPA) of Green Hydrogen by 2030. It also revises the state’s Renewable Energy (RE) capacity target to 10 GW by the same year, emphasizing solar, wind, and pumped hydro storage.
“Odisha is transitioning from a mineral-based economy to a green energy economy,” Chief Minister Majhi stated. “This policy not only supports our industries in meeting their Net Zero commitments but also opens new avenues for export to European and Asian markets.”
The approval comes on the heels of recent investment proposals from major players like Tata Power and ReNew E-Fuels, signaling strong investor confidence. The state government expects the new framework to accelerate the execution of these projects, particularly in the steel and fertilizer sectors, which are major consumers of hydrogen.
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