NEW DELHI: The Indian government is reportedly formulating a customized power tariff policy tailored specifically for energy-intensive sectors like data centres and green hydrogen manufacturing units, according to recent media reports.
The proposed framework aims to address the massive and continuous electricity demands of these emerging industries. Officials hope to boost domestic manufacturing and digital infrastructure.
Data centres and green hydrogen producers require round-the-clock power supplies at competitive rates. High electricity costs currently threaten the commercial viability of these capital-intensive projects across the country.
The Ministry of Power is consulting industry stakeholders to finalize the framework. The policy will likely offer waivers on certain inter-state transmission charges. It may also introduce flexible open-access rules for renewable energy sourcing.
Green hydrogen producers need massive amounts of renewable electricity to split water molecules efficiently. Data centres require uninterrupted green power to meet strict corporate net-zero emission targets.
Existing electricity tariffs often make long-term power purchase agreements economically unfeasible. This new policy bridges that critical gap for developers.
State governments will play a crucial role in implementing these targeted tariff concessions. Several states have already begun drafting complementary regional incentives to attract foreign investments.
The policy draft is expected to face public review soon. Formal notification could follow by the end of the current fiscal quarter.
