APPSC Current Affairs June 2nd 2026

News at a Glance

Vizag Data Centre: Opportunities and Challenges

Relevance: APPSC: Andhra Pradesh economy, Visakhapatnam development, digital infrastructure, environment and governance

Important Keywords for Prelims and Mains

For Prelims:

Google Cloud India AI Hub, Hyperscale Data Centre, 1 GW Data Centre, Subsea Cables, America-India Connect, Artificial Intelligence Infrastructure, Power Usage Effectiveness, Renewable Energy, Environmental Impact Assessment

For Mains:

Digital sovereignty, sovereign AI, data localisation, energy-water stress, environmental governance, public consultation, green data centres, digital infrastructure diplomacy, regional development

Why in News?

Google and the Andhra Pradesh government recently broke ground for the Google Cloud India AI Hub in Visakhapatnam.
The project is expected to involve a massive investment and includes a 1 GW hyperscale AI data centre, high-capacity digital connectivity and international subsea cable landing infrastructure. The project is being developed with partners such as AdaniConneX and Airtel Nxtra.
The project is seen as a major step in India’s digital infrastructure growth. However, it has also raised concerns about power demand, water use, environmental safeguards, data sovereignty and dependence on foreign technology providers.

What is the Google Cloud India AI Hub?

The Google Cloud India AI Hub is a large digital infrastructure project proposed in Visakhapatnam, Andhra Pradesh.

It includes:

A 1 GW hyperscale AI data centre
High-performance computing infrastructure
International subsea cable connectivity
Cloud and AI services
Digital ecosystem development around Visakhapatnam

A hyperscale data centre is a very large facility that stores, processes and manages huge amounts of data. It is used for cloud computing, artificial intelligence, machine learning, digital services and large-scale internet applications.

What is America-India Connect?

America-India Connect is Google’s international digital connectivity initiative.

It aims to develop new subsea cable routes linking India with other major regions. Google has stated that the initiative will develop a direct fibre-optic path between Vizag and Chennai on India’s east coast and connect it with routes towards South Africa and the United States.

This can make Visakhapatnam an important digital gateway on India’s eastern coast.

Strategic Significance of the Project

1. Moves India from IT Services to Digital Infrastructure

India has long been known for software services and coding.
The Vizag AI Hub represents a shift towards ownership of high-end digital infrastructure such as data centres, cloud systems and AI computing capacity.
This is important for India’s ambition to become a global digital power.

2. Supports AI and Cloud Economy

Artificial intelligence requires large computing power.

A hyperscale AI hub can support:

AI model training
Cloud computing
Data storage
Digital public infrastructure
Start-ups and enterprises
High-performance computing services

This can strengthen India’s AI ecosystem.

3. Boosts Visakhapatnam as a Digital Gateway

The project can make Visakhapatnam India’s second major gateway on the eastern seaboard.
Subsea cable landing can improve global data connectivity and reduce dependence on existing routes.
It can also reduce excessive dependence on older routes through Mumbai, Chennai or foreign-controlled cable paths.

4. Reduces Geopolitical Cable Risk

Many data cables from India’s western coast pass through sensitive geopolitical zones such as the Red Sea.
An eastern gateway through Visakhapatnam can provide alternative routes.
This can improve digital resilience and reduce risk from geopolitical disruptions.

5. Supports Semiconductor and Hardware Demand

Large AI data centres require servers, chips, GPUs, cooling systems and power equipment.
This can indirectly create demand for high-end electronics and computing hardware.
It may support India’s broader push for semiconductor and electronics manufacturing.

6. Promotes Regional Development

The project can move high-value technology activity beyond traditional metropolitan centres.

Visakhapatnam may attract:

Cloud companies
AI start-ups
Technical manpower
Data infrastructure firms
Cable and network companies
Renewable energy investments

This can help Andhra Pradesh build a new technology-driven growth corridor.

Major Challenges

1. Huge Power Demand

The proposed hub may require around 1 GW of power.
This is a very large electricity requirement for a single digital infrastructure facility.
Such demand can strain the local grid and affect power availability for residents, small industries and other users.

2. Renewable Energy Challenge

Google has pledged to use renewable energy.
However, data centres need continuous power supply throughout the day.
Since solar and wind power are intermittent, the project may still require backup systems, grid balancing and storage solutions.
Backup diesel generators can affect local air quality.

3. High Water Requirement

AI data centres generate large amounts of heat.
In humid coastal conditions such as Visakhapatnam, efficient cooling can become difficult.
If evaporative cooling is used, it may require large quantities of water.
The article estimates that similar facilities may consume more than 2 million litres per day per 100 MW. For a 1 GW facility, this may mean nearly 20 million litres per day.
This raises concerns because Visakhapatnam district periodically faces water stress, especially in summer.

4. Environmental Impact

Large data centres require land, power infrastructure, cooling systems, water supply and backup generators.

Possible environmental impacts include:

Groundwater stress
Increased water extraction
Local air pollution from diesel backup
Heat generation
Pressure on land resources
Carbon emissions if renewable supply is not truly additional

Therefore, environmental safeguards are essential.

5. Data Sovereignty Concerns

The project can help Indian firms store and process data within India.
However, dependence on a single foreign cloud provider may create risks.
India may become a location for “sovereign AI” only in physical terms, while the technology stack, algorithms, cloud architecture and decision-making remain controlled by a foreign company.

6. Vendor Lock-in

If Indian firms and public institutions depend heavily on one proprietary cloud system, they may face vendor lock-in.
Vendor lock-in means users become dependent on one company’s technology and find it difficult or costly to shift to another provider.
This can affect competition, digital autonomy and long-term bargaining power.

7. Public Consultation and EIA Concerns

Rights groups have raised concerns that the project may have avoided a full environmental impact assessment and public hearings.
For large infrastructure projects, public consultation is important because local communities may be affected by land use, water use, power infrastructure and environmental impacts.

Governance Issues

1. Need for Strong Environmental Benchmarks

State governments often offer tax holidays, land incentives and power subsidies to attract large investors.

However, these incentives should be linked with environmental conditions.

For data centres, benchmarks should include:

Renewable energy targets
Water-use limits
Waste heat management
Diesel generator restrictions
Rainwater harvesting
Wastewater recycling
Local environmental monitoring

2. Need for Resource Accounting

Before approving such projects, governments should calculate their expected demand for:

Power
Water
Land
Backup fuel
Cooling infrastructure
Transmission systems
Local ecological capacity

Without resource accounting, digital growth may create hidden environmental costs.

3. Need for Public Hearings

Local communities should be informed about the project’s benefits and risks.
Public hearings help identify local concerns related to land, water, employment and pollution.
They also make the project more transparent and democratic.

4. Need for Data Governance Framework

India needs strong rules on:

Data localisation
Cross-border data flows
Cybersecurity
Cloud procurement
Algorithmic accountability
Critical digital infrastructure
Competition in cloud services

This will ensure that digital infrastructure supports national interest.

Significance for Andhra Pradesh

The Vizag AI Hub can be a major opportunity for Andhra Pradesh.

It can help the state develop as:

A digital infrastructure hub
An AI and cloud services centre
A subsea cable gateway
A technology investment destination
A new employment and skill development centre

However, Andhra Pradesh must balance this growth with environmental sustainability and local resource security.

Challenges for Andhra Pradesh

The state will need to manage:

Power supply for the data centre and citizens
Water availability in summer months
Environmental clearances
Land-related concerns
Public consultation
Local employment expectations
Urban pressure on Visakhapatnam
Long-term ecological impact

A project of this size can become a growth engine only if it is supported by transparent and sustainable planning.

Way Forward

1. Mandatory Environmental Assessment

Large hyperscale data centres should undergo full environmental assessment.

This should include power, water, land, emissions, cooling systems and local ecological impact.

2. Water-Neutral Data Centre Model

The project should use:

Recycled wastewater
Rainwater harvesting
Zero liquid discharge systems
Dry cooling where feasible
Water replenishment projects
Real-time water-use monitoring

Freshwater use should be strictly limited.

3. 24×7 Renewable Energy Matching

The company should not only buy renewable energy certificates.

It should ensure real-time clean energy supply through solar, wind, storage and grid balancing.

4. Strong Public Consultation

Local communities should be consulted before and during the project.

The government should publish clear information on land use, water demand, employment generation and environmental safeguards.

5. Avoid Vendor Lock-in

India should promote multi-cloud systems, open standards and domestic cloud capacity.

Public institutions should avoid complete dependence on a single foreign provider.

6. Data Sovereignty Safeguards

India must ensure that data storage in India is matched with Indian regulatory control, cybersecurity standards and accountability.

Sovereign AI should mean not only local data storage but also meaningful control over infrastructure, models and governance.

7. Central Guidelines for Data Centres

India needs national standards for large data centres.

These should cover:

Energy efficiency
Power usage effectiveness
Water usage effectiveness
Renewable energy use
Public hearings
Local resource accounting
Disaster resilience
Cybersecurity

Conclusion

The Google Cloud India AI Hub in Visakhapatnam is a major step in India’s digital infrastructure journey.

It can strengthen India’s AI ecosystem, improve global connectivity and make Andhra Pradesh a major digital gateway.

However, the project also shows that AI is not only a software issue. It is also an infrastructure issue involving power, water, land, environment and governance.

India must ensure that its rise in the digital economy does not weaken environmental protection or democratic accountability. The future of digital infrastructure should be technologically advanced, environmentally sustainable and socially responsible.

CARE MCQ

Q. With reference to the Google Cloud India AI Hub in Visakhapatnam, consider the following statements:

It includes a 1 GW hyperscale AI data centre.
It is linked with international subsea cable connectivity.
It is located on India’s western coast.

How many of the above statements are correct?

A. Only one
B. Only two
C. All three
D. None

Answer: B

Explanation:

Statement 1 is Correct: The project includes a 1 GW hyperscale AI data centre.
Statement 2 is Correct: It is linked with international subsea cable connectivity.
Statement 3 is Incorrect: Visakhapatnam is located on India’s eastern coast.

Additional Information: The project can make Visakhapatnam an important digital gateway on India’s eastern seaboard.

FAQs

1. What is the Google Cloud India AI Hub?

It is a large AI and cloud infrastructure project proposed in Visakhapatnam, Andhra Pradesh.

2. Why is it called a hyperscale data centre?

It is called hyperscale because it requires very large computing capacity, power supply and data connectivity.

3. Why is the Vizag project important?

It can make Visakhapatnam a major AI, cloud and subsea cable gateway on India’s eastern coast.

4. What are the main concerns?

The major concerns are high power demand, water use, environmental impact, public consultation and dependence on foreign cloud technology.

5. What is data sovereignty?

Data sovereignty means meaningful national control over data, digital infrastructure and rules governing data use.

6. What is the way forward?

India should adopt green data centre standards, water-use safeguards, renewable energy matching, public hearings and strong data governance rules.

Source : The Hindu

Union Health Ministry Releases National Family Health Survey – 6

Relevance: GS Paper II: Social Justice, Health, Government Policies, Women and Child Development

Important Keywords for Prelims and Mains

For Prelims:

NFHS-6, MoHFW, IIPS Mumbai, ANC, Institutional Delivery, Full Immunisation, Rotavirus Vaccine, Stunting, Wasting, PM-JAY, POSHAN 2.0, U-WIN

For Mains:

Maternal health, child nutrition, financial protection, universal health coverage, public health system, women empowerment, last-mile delivery, SDG achievement

Why in News?

The Union Health Ministry released the National Family Health Survey-6.
NFHS-6 shows India’s progress in maternal health, child healthcare, nutrition, immunisation, financial protection and women empowerment.
The survey highlights improvement in institutional deliveries, antenatal care, child vaccination, reduction in stunting and expansion of health insurance coverage.

About NFHS-6

The National Family Health Survey is a large-scale survey that provides data on health, nutrition, population and family welfare.

NFHS-6 was conducted during 2023–24 by the Ministry of Health and Family Welfare. The International Institute for Population Sciences, Mumbai acted as the nodal agency.

The survey covered nearly 6.79 lakh households across 715 districts.

It supports evidence-based planning and helps governments design policies up to the district level.

Key Findings of NFHS-6

1. Maternal and Child Healthcare

NFHS-6 shows strong improvement in maternal and child healthcare services.

Important findings include:

Antenatal care coverage increased from 92.6% to 95.9%.
Mothers receiving ANC in the first trimester increased from 70.0% to 76.2%.
Mothers receiving at least four ANC visits increased from 58.5% to 65.2%.
Institutional deliveries increased from 88.6% to 90.6%.
Births attended by skilled health personnel increased from 89.4% to 91.3%.
Postnatal care for newborns within two days improved from 79.1% to 85.3%.

This shows better access to healthcare during pregnancy, childbirth and postnatal period.

2. Maternal Nutrition

Maternal nutrition also improved.

Mothers consuming iron folic acid tablets for 100 days or more increased from 44.1% to 54.9%.
Mothers consuming iron folic acid tablets for 180 days or more increased from 26.0% to 37.8%.

This is important for reducing anaemia and improving maternal and child health outcomes.

3. Family Planning

India’s Total Fertility Rate remains at 2.0.

The Contraceptive Prevalence Rate increased from 66.7% to 69.1%.

This shows improved access to family planning services and greater awareness among couples.

4. Child Immunisation

NFHS-6 shows continued progress towards universal immunisation.

Full vaccination coverage among children aged 12–23 months increased from 83.8% to 87.1%.
Any vaccine received by children aged 12–23 months remained above 96%.
95.6% of children received most vaccinations through public health facilities.
Rotavirus vaccination coverage increased sharply from 36.4% to 85.4%.
Second dose of measles-containing vaccine increased from 58.6% to 71.8%.

This reflects stronger last-mile delivery, better cold chain systems and public trust in government health facilities.

5. Child Health Indicators

NFHS-6 also shows improvement in child health.

Symptoms of acute respiratory infection among children declined from 2.8% to 1.9%.
Severe diarrhoea declined to 0.5%.

These improvements indicate better child healthcare, sanitation awareness and early treatment access.

6. Child Nutrition

NFHS-6 indicates encouraging progress in child nutrition.

95.6% of children under six months were breastfed during the survey period.
Children breastfed within one hour of birth increased from 41.8% to 50.1%.
Stunting among children under five declined from 35.5% to 29.3%.
Severe wasting declined from 7.7% to 5.2%.
Underweight prevalence declined marginally from 32.1% to 31.8%.
Children aged 6–8 months receiving solid or semi-solid food along with breastmilk increased from 45.9% to 59.5%.

This shows improvement in long-term nutrition outcomes, but undernutrition remains a concern.

7. Health Protection and Insurance

Health insurance or financing scheme coverage increased from 41.0% to 60.2% at the household level.

This reflects the impact of Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana and other health protection initiatives.

It is an important step towards Universal Health Coverage.

8. Women’s Empowerment and Financial Inclusion

NFHS-6 also records progress in women’s empowerment.

Women who had ever used the internet nearly doubled from 33.3% to 64.3%.
Women having a bank or savings account that they themselves use increased from 78.6% to 89.0%.
Women having a mobile phone that they themselves use increased from 53.9% to 63.6%.
Use of hygienic methods of menstrual protection among women aged 15–24 years increased from 77.6% to 79.2%.

These indicators show improvement in digital access, financial inclusion and health awareness among women.

Major Schemes Behind Progress

1. Janani Suraksha Yojana

It promotes institutional deliveries by providing financial assistance to pregnant women, especially from poor households.

2. Janani Shishu Suraksha Karyakram

It provides free services to pregnant women and sick newborns in public health institutions.

3. Pradhan Mantri Surakshit Matritva Abhiyan

It provides assured antenatal care services to pregnant women.

4. SUMAN

Surakshit Matritva Aashwasan aims to provide assured, respectful and quality maternal and newborn healthcare.

5. PM Matru Vandana Yojana

It provides maternity benefit support to pregnant and lactating women.

6. Universal Immunisation Programme

It provides vaccines to protect children against vaccine-preventable diseases.

7. POSHAN Abhiyaan and POSHAN 2.0

These schemes aim to reduce malnutrition among children, adolescent girls, pregnant women and lactating mothers.

8. Ayushman Bharat PM-JAY

It provides health insurance coverage to vulnerable families and reduces out-of-pocket expenditure.

9. Mission Parivar Vikas

It focuses on improving access to family planning services.

10. U-WIN

It supports digital tracking of immunisation services.

Significance of NFHS-6 Findings

1. Shows Progress in Public Health

NFHS-6 shows that India has improved in maternal healthcare, institutional deliveries, child immunisation and nutrition.

This reflects the impact of sustained public health programmes.

2. Strengthens Evidence-Based Policymaking

NFHS data helps governments plan policies based on facts.

District-level data can guide targeted interventions.

3. Supports SDG Achievement

Progress in health, nutrition, women empowerment and financial protection supports India’s progress towards Sustainable Development Goals.

4. Shows Public Trust in Government Health Facilities

The fact that 95.6% of children received most vaccinations through public health facilities shows community trust in the public health system.

5. Improves Financial Protection

Expansion of health insurance coverage reduces the burden of health expenditure on poor and vulnerable households.

6. Promotes Women Empowerment

Improvement in women’s bank account ownership, mobile phone use and internet access reflects rising social and economic empowerment.

Challenges

1. Persistent Undernutrition

Stunting and underweight levels have declined, but they remain significant public health concerns.

2. Dual Burden of Malnutrition

India faces both undernutrition and rising overweight or obesity among adults.

This creates a complex nutrition challenge.

3. Non-Communicable Diseases

Rising lifestyle-related risks and non-communicable diseases require greater focus on preventive healthcare.

4. Regional Inequality

National improvement may hide gaps between states, districts, rural areas and urban areas.

5. Quality of Healthcare

Higher institutional delivery is important, but quality of care during pregnancy, childbirth and postnatal period also needs attention.

6. Behavioural Change

Improvements in nutrition, hygiene, breastfeeding and family planning require continuous awareness and community participation.

Way Forward

India should strengthen primary healthcare through Health and Wellness Centres and better frontline health worker support.
Nutrition programmes must focus on the first 1,000 days of a child’s life, from pregnancy to two years of age.
The government should improve dietary diversity, breastfeeding practices and complementary feeding.
Digital platforms such as U-WIN should be used to track immunisation and reduce dropouts.
There is a need to strengthen preventive healthcare to control non-communicable diseases and lifestyle risks.
Health insurance coverage should be expanded along with quality and affordability of healthcare services.
Women’s digital and financial inclusion should be linked with health awareness, nutrition education and welfare delivery.

Conclusion

NFHS-6 reflects India’s steady progress in maternal and child health, immunisation, nutrition, financial protection and women empowerment.

The findings show that flagship schemes and stronger primary healthcare delivery have improved several key indicators.

However, challenges such as undernutrition, non-communicable diseases, obesity and regional inequalities remain. India must now focus on quality healthcare, preventive health, balanced nutrition and last-mile delivery to achieve inclusive and sustainable health outcomes.

CARE MCQ

Q. With reference to National Family Health Survey-6, consider the following statements:

NFHS-6 was conducted during 2023–24.
International Institute for Population Sciences, Mumbai was the nodal agency.
NFHS-6 covered nearly 6.79 lakh households across 715 districts.

How many of the above statements are correct?

A. Only one
B. Only two
C. All three
D. None

Answer: C

Explanation:

Statement 1 is Correct: NFHS-6 was conducted during 2023–24.
Statement 2 is Correct: IIPS Mumbai acted as the nodal agency.
Statement 3 is Correct: The survey covered nearly 6.79 lakh households across 715 districts.

Additional Information: NFHS provides important data on health, nutrition, population and family welfare indicators.

FAQs

1. What is NFHS-6?

NFHS-6 is a national survey that provides data on health, nutrition, population and family welfare indicators.

2. Who conducted NFHS-6?

It was conducted by the Ministry of Health and Family Welfare with IIPS Mumbai as the nodal agency.

3. What is the major maternal health finding?

Institutional deliveries increased to 90.6%, and ANC coverage increased to 95.9%.

4. What is the major child immunisation finding?

Full vaccination coverage among children aged 12–23 months increased to 87.1%.

5. What is the major nutrition finding?

Stunting declined from 35.5% to 29.3%, and severe wasting declined from 7.7% to 5.2%.

6. Why is NFHS important?

NFHS helps governments plan health and welfare programmes using reliable data.

Source : PIB

India’s Green Hydrogen Roadmap

Relevance: GS Paper III – Energy Security, Industrial Growth, Environment, Climate Change, Infrastructure and Technology.

Important Keywords for Prelims and Mains

For Prelims:

Green Hydrogen, Electrolyser, National Green Hydrogen Mission, SIGHT Scheme, Green Ammonia, SECI, Fuel Cell Electric Vehicles, Green Hydrogen Hubs, Renewable Energy.

For Mains:

Energy Security, Industrial Decarbonisation, Hard-to-Abate Sectors, Fossil Fuel Import Dependence, Green Premium, Delivered Cost, Modular Electrolysers, Hydrogen Economy

Why in News?

India’s dependence on imported fossil fuels has renewed focus on long-term energy security. The deeper challenge is in industries such as fertilisers, refineries, steel, ammonia and petrochemicals, where fossil fuels are part of the production process.the National Green Hydrogen Mission should not focus only on production capacity. It must also make green hydrogen commercially viable for industries by reducing its delivered cost and creating stable demand.

What is Green Hydrogen?

Green hydrogen is hydrogen produced by splitting water through electrolysis using renewable energy such as solar, wind or hydropower.

In this process:

Water is split into hydrogen and oxygen.
An electrolyser uses electricity for this process.
If the electricity comes from renewable energy, the hydrogen is called green hydrogen.
It produces almost no greenhouse gas emissions during production.

National Green Hydrogen Mission

Nodal Ministry

Ministry of New and Renewable Energy

Objective

Decarbonise energy, industry and mobility sectors
Develop indigenous manufacturing capacity
Create export opportunities for green hydrogen and its derivatives

Components

Strategic Interventions for Green Hydrogen Transition Programme (SIGHT)
Strategic Hydrogen Innovation Partnership (SHIP) for R&D

Expected Outcomes by 2030

At least 5 MMT green hydrogen production per year
Nearly ₹1 lakh crore fossil fuel import savings
Around 6 lakh jobs
About 50 MMT CO₂ emissions avoided annually
More than ₹8 lakh crore investment

Types of Hydrogen

Type	Production Method	Energy Source	Carbon Footprint
Green Hydrogen	Electrolysis	Renewable energy	Nearly zero
Grey Hydrogen	Steam Methane Reforming	Natural gas	High
Blue Hydrogen	SMR with Carbon Capture	Natural gas	Lower than grey
Brown Hydrogen	Gasification	Coal	Very high

Green hydrogen is the cleanest form because it uses renewable energy.

Why Green Hydrogen is Important for India

India imports large quantities of fossil fuels. These imports affect energy security, foreign exchange reserves and industrial competitiveness.

Green hydrogen can help India:

Reduce dependence on imported natural gas and oil.
Decarbonise industries where direct electrification is difficult.
Support India’s Net Zero 2070 target.
Build a new clean energy manufacturing ecosystem.
Create high-skilled green jobs.
Strengthen domestic technology and energy sovereignty.

Major Applications of Green Hydrogen

1. Steel Industry

Steel is one of the most carbon-intensive sectors. Traditionally, coking coal is used to remove oxygen from iron ore.

Green hydrogen can replace coking coal in the Direct Reduced Iron process. This can reduce emissions because the main by-product is water vapour.

The Ministry of Steel has been allocated ₹455 crore for pilot projects using green hydrogen in the steel sector till FY 2029–30.

2. Fertiliser Sector

India is the second-largest consumer and third-largest producer of fertilisers globally.

Fertiliser production needs ammonia, and ammonia production depends heavily on hydrogen. At present, much of this hydrogen comes from natural gas.

Green hydrogen can be used to produce green ammonia, reducing natural gas imports. SECI has signed 10-year contracts to supply 7,24,000 tonnes of green ammonia annually to 13 fertiliser plants. This is expected to save around $2.5 billion in foreign exchange over a decade.

3. Refineries and Petrochemicals

Refineries use hydrogen for processes such as removing sulphur from fuels and upgrading crude oil.

At present, most refinery hydrogen is grey hydrogen, produced from natural gas. Replacing it with green hydrogen can reduce direct industrial emissions.

SECI is also supporting refinery-linked green hydrogen projects of around 30,000 tonnes per annum.

4. Shipping and Ports

Green hydrogen and its derivatives such as green ammonia and green methanol can be used as clean shipping fuels.

India has identified major ports such as:

Deendayal Port, Kandla
V.O. Chidambaranar Port, Tuticorin
Paradip Port, Odisha

as Green Hydrogen Hubs. These hubs can support clean bunkering, storage and distribution.

5. Heavy-Duty Transport

Battery electric vehicles are suitable for small vehicles, but heavy trucks and buses need longer range and faster refuelling.

Hydrogen fuel cells can help in:

Long-distance buses
Heavy trucks
Industrial transport
Difficult terrain routes

Under NGHM, pilot projects have been sanctioned for 37 hydrogen-fuelled buses and trucks across 10 routes, supported by 9 hydrogen refuelling stations.

6. Grid Balancing and Energy Storage

Solar and wind power are intermittent. Green hydrogen can store surplus renewable electricity.

During high renewable generation, extra electricity can produce hydrogen. Later, this hydrogen can be converted back into electricity when demand rises.

NTPC is developing a major green hydrogen hub at Pudimadaka, Andhra Pradesh, which can support large-scale renewable energy storage.

Key Issue: Delivered Cost Matters More Than Production Cost

One of the most important arguments in the recent debate is that India must focus on the delivered cost of hydrogen, not only its production cost.

Even if hydrogen is produced cheaply, it may become expensive after adding:

Transport cost
Storage cost
Purification cost
Conversion losses
Safety infrastructure cost
Distribution cost

In advanced hydrogen markets, midstream and end-use infrastructure can account for 70–85% of the final delivered cost. Therefore, India should not depend only on large coastal hubs and long-distance supply chains.

Need for Modular Electrolysers

Many small and medium industries need hydrogen in modest quantities near their production units. For them, getting hydrogen from distant hubs may be costly.

Therefore, India should promote:

Modular electrolysers
On-site hydrogen production
Near-site hydrogen production
Small-scale hydrogen systems for MSMEs
Application-specific hydrogen engineering

A special SME window for 10 kW to 2 MW electrolyser stacks can help small industries adopt green hydrogen without depending only on large centralised hubs.

Key Challenges

1. High Cost

Green hydrogen is still costlier than grey hydrogen. As of 2026, green hydrogen costs around ₹397–₹560 per kg, while grey hydrogen generally costs around ₹150–₹200 per kg.

2. Green Premium

Industries may not shift to green hydrogen voluntarily unless the cost gap is reduced through incentives, carbon pricing or purchase obligations.

3. High Capital Requirement

Electrolysers require advanced technology, high-precision manufacturing and costly materials.

4. Import Dependence

India still depends on imported components such as specialised membranes, catalysts and electrolyser stacks.

5. Water Requirement

Producing 1 kg of hydrogen through electrolysis needs around 9–11 litres of high-purity water. This can be a concern in water-stressed industrial regions.

6. Storage and Transport

Hydrogen is difficult to store and transport because it is highly flammable and can weaken steel pipelines.

7. Weak Safety Standards

India needs stronger safety rules for hydrogen production, storage, transport, refuelling and industrial use.

8. Global Competition

Countries such as Australia, Chile and West Asian nations are also investing heavily in green hydrogen.

9. Limited R&D

India’s low R&D spending slows down innovation in hydrogen storage, transport, electrolysers and industrial applications.

Measures Needed

1. Create Stable Industrial Demand

The government should convert existing grey hydrogen and ammonia demand into long-term green hydrogen demand. Fertilisers and refineries should be the first priority because they already use hydrogen at scale.

2. Expand SIGHT Incentives

The Strategic Interventions for Green Hydrogen Transition scheme should support both large projects and small modular electrolysers.

3. Develop Hydrogen Valleys

Hydrogen production and consumption should be located close to each other in industrial clusters. This reduces transport, storage and purification costs.

4. Introduce Green Hydrogen Purchase Obligations

Like Renewable Purchase Obligations, India can introduce Green Hydrogen Purchase Obligations for sectors such as fertilisers and refineries.

5. Improve Renewable Power Supply

Electrolysers need renewable electricity that is cheap, reliable and dispatchable. India must improve transmission, storage and open access to renewable power.

6. Promote Indigenous Manufacturing

India should support domestic production of electrolysers, PEM stacks, catalysts and other components through PLI, R&D support and public-private partnerships.

7. Build Hydrogen Infrastructure

India needs hydrogen-ready pipelines, storage facilities, refuelling stations and port infrastructure.

8. Strengthen Safety Protocols

A national hydrogen safety framework is needed for production, storage, transport and use.

9. Skill Development

India must create trained engineers, technicians and safety professionals for the hydrogen economy.

10. Link with Carbon Market

The Indian Carbon Market can make green hydrogen more attractive by increasing the cost of carbon-intensive alternatives.

Way Forward

India’s green hydrogen strategy must shift from only capacity creation to market creation.

The next phase should focus on:

Reducing delivered cost.
Creating bankable demand.
Supporting modular electrolysers for MSMEs.
Locating production near industrial demand.
Making renewable power reliable and affordable.
Building hydrogen safety and transport infrastructure.
Promoting domestic R&D and manufacturing.

This will make green hydrogen usable not only in large public-sector projects but also in ordinary industrial settings.

Conclusion

Green hydrogen is not merely an energy project. It is a major industrial transformation strategy for India.

To make it viable, India must reduce delivered cost, create long-term demand, promote modular electrolysers, reform the power sector and build domestic manufacturing capacity. If implemented well, green hydrogen can reduce fossil fuel dependence, strengthen energy security, support industrial decarbonisation and help India move towards Net Zero 2070.

UPSC PYQ

Q. Consider the following heavy industries: (2023)

Fertilizer plants
Oil refineries
Steel plants

Green hydrogen is expected to play a significant role in decarbonizing how many of the above industries?

A. Only one

B. Only two

C. All three

D. None

Answer: C

Explanation

1. Fertilizer plants – Correct

Fertilizer plants require ammonia for producing urea and other fertilizers.
At present, ammonia production largely depends on hydrogen produced from natural gas.
Green hydrogen can be used to produce green ammonia, reducing fossil fuel use and emissions.

2. Oil refineries – Correct

Oil refineries use hydrogen for processes such as desulfurisation and upgrading crude oil products.
This hydrogen is usually grey hydrogen, produced from fossil fuels.
Green hydrogen can replace grey hydrogen and reduce refinery emissions.

3. Steel plants – Correct

Steel production is highly carbon-intensive because it uses coking coal.
Green hydrogen can replace coal as a reducing agent in the Direct Reduced Iron process.
This can help reduce carbon emissions from the steel industry.

Additional Information

Green hydrogen is produced by splitting water through electrolysis using renewable energy. It is important for decarbonising hard-to-abate sectors such as fertilizers, oil refineries, steel, shipping and heavy transport. Therefore, all three industries mentioned in the question can use green hydrogen for decarbonisation.

CARE MCQ

Q. With reference to green hydrogen, consider the following statements:

It is produced through electrolysis using renewable energy.
It produces almost no greenhouse gas emissions during production.
It is produced mainly from coal gasification.

Which of the above statements are correct?

A. 1 and 2 only

B. 2 and 3 only

C. 1 and 3 only

D. 1, 2 and 3

Answer: A

Explanation:

Statement 1 is correct: Green hydrogen is produced through electrolysis using renewable energy.
Statement 2 is correct: It has almost zero emissions during production.
Statement 3 is incorrect: Coal gasification produces brown hydrogen.