Green Hydrogen Plant Setup — Licences, Approvals & Mission Support
Setting up a green hydrogen plant in India means lining up a company, pollution consents, a PESO licence for hydrogen storage, factory and fire approvals, and certification under the Green Hydrogen Standard. We prepare and file these approvals while your engineers build the plant.
What it is
This page covers the approvals side of building a unit that makes hydrogen from renewable power. The electrolysers and piping are for your engineers. Our work is the paper trail that lets the plant be built, run and sell its hydrogen as “green”.
The policy base is the National Green Hydrogen Mission, approved by the Union Cabinet on 4 January 2023 with an initial outlay of ₹19,744 crore and a target of at least 5 million metric tonnes of green hydrogen a year by 2030. The Ministry of New and Renewable Energy (MNRE) notified the Green Hydrogen Standard for India on 21 August 2023. Around these sit the Water and Air Acts, the Static and Mobile Pressure Vessels (Unfired) Rules, 2016 for storage, and labour and fire laws.
Who it applies to
New green hydrogen producers
Developers of an electrolysis or biomass-based plant, selling hydrogen or supplying a group refinery, fertiliser or steel unit.
Industries making hydrogen for their own use
Existing manufacturers adding a captive hydrogen unit. Take a Faridabad heat-treatment shop that wants an on-site electrolyser: the factory already runs, yet the addition needs a fresh consent and the storage tank brings in PESO.
Bidders under the SIGHT programme
Companies bidding for incentives under the Strategic Interventions for Green Hydrogen Transition (SIGHT) programme.
Why it matters
Licence storage before the first tank fills
Hydrogen is a flammable compressed gas. Storing it in pressure vessels above the limits in the SMPV(U) Rules, 2016 needs a licence from the Petroleum and Explosives Safety Organisation (PESO).
“Green” has a legal meaning
Under the Green Hydrogen Standard, hydrogen counts as green only if well-to-gate emissions are not more than 2 kg CO₂ equivalent per kg of hydrogen, averaged over 12 months.
Keep papers bid-ready for SIGHT
Of the ₹19,744 crore Mission outlay, ₹17,490 crore is for the SIGHT programme. Gaps in company, consent or land records slow bids down.
Documents required
Company and promoters
- Certificate of incorporation, MOA and AOA with hydrogen production in the objects
- PAN, GST registration and Udyam number if eligible
- Directors’ DSCs and KYC
Land and plant
- Registered sale deed or registered lease for the site
- Site plan, layout and building plans
- Process flow, capacity and list of plant and machinery
- Storage vessel details and layout for the PESO application
Power, water and safety
- Renewable power arrangement (captive plant, PPA or open access papers)
- Source of water and effluent handling details
- Fire-fighting scheme and safety studies from your consultants
- Emission records for certification
Approvals roadmap at a glance
| Stage | Approval | Who grants it |
|---|---|---|
| Phase A: Structure | Company or LLP incorporation, PAN, GST, Udyam | MCA, Income Tax, GST, Ministry of MSME |
| Phase B: Before construction | Consent to Establish (CTE) under the Water and Air Acts; factory building plan approval; fire-fighting scheme approval | State Pollution Control Board; state labour/factories department; fire department |
| Phase C: Hydrogen storage | Storage licence under SMPV(U) Rules, 2016 (Form LS-1A for compressed gas) | PESO (Chief Controller or authorised Controller) |
| Phase D: Before operation | Consent to Operate (CTO); factory registration/licence; fire safety certificate | SPCB; labour department; fire department |
| Phase E: Selling as green | Certification under the Green Hydrogen Certification Scheme of India | Bureau of Energy Efficiency (nodal authority) |
The exact list depends on your state, capacity and site. Here is the catch: the PESO file needs the final layout, which often changes after the hazard study. In practice, we file the company and consent papers first and keep the PESO file ready to go the day the drawings freeze.
How it works
Map the approvals for your site
From your capacity, site and storage plan we prepare a written approvals list, in the order to apply.
Set up the project company
Most developers use a separate private limited company for the plant, which lenders prefer. We incorporate it and register PAN, GST and Udyam.
File pre-construction approvals
We file the CTE with the State Pollution Control Board, the factory plan approval and the fire scheme. In Haryana we handle HSPCB consent to establish and operate on the OCMMS portal.
Apply for the PESO storage licence
With your engineers’ layout and vessel details, we file the PESO application and track it through queries and inspection.
Get operating approvals in place
Before commissioning, we file the CTO, the factory licence and the fire safety certificate.
Support certification and ongoing compliance
We organise records for the accredited agency that verifies your emissions, and keep returns and ROC filings on a calendar.
Timelines
Expect four months for consent
Under Section 25(7) of the Water Act, consent is deemed granted if the Board does not decide a complete application within four months. Red-category processing is now 90 days.
Expect three months for factory plans
Under Section 6(2) of the Factories Act, plan permission is deemed granted if no order comes within three months. Its rules continue while states move to the OSH Code, 2020. Notice of occupation goes in at least 15 days before use.
Track emissions over 12 months
Emissions are measured as a 12-month average. Weeks on grid power during commissioning can push that average up, so plan metering from day one. PESO licences under the 2025 amendment run for 10 years.
What happens if you skip an approval
Closure and power cut
Section 31A of the Air Act and Section 33A of the Water Act let the Board order closure and stop electricity or water. Section 37 of the Air Act carries a penalty of ₹10,000 to ₹15 lakh.
Factory law penalties
Section 92 of the Factories Act allows imprisonment up to two years or a fine up to ₹1 lakh, or both, with up to ₹1,000 a day for continuing contraventions.
Lost incentives and buyers
Hydrogen that cannot be certified under the Green Hydrogen Standard cannot be sold as green. Certification is required for facilities taking government support.
Frequently asked questions
What licences do I need to start a green hydrogen plant in India?
At least five approvals: incorporation with PAN and GST, a Consent to Establish and then a Consent to Operate from the State Pollution Control Board, a licence under the SMPV(U) Rules, 2016, factory approvals and a fire safety certificate. Green hydrogen certification follows once you sell. We give you the exact list for your site before you spend on any of it.
What is the Green Hydrogen Standard for India?
It is MNRE’s definition of green hydrogen, notified on 21 August 2023. Hydrogen produced from renewable energy counts as green only if well-to-gate emissions, including water treatment, electrolysis, gas purification, drying and compression, are not more than 2 kg of CO₂ equivalent per kg of hydrogen, taken as an average over the last 12 months. The Bureau of Energy Efficiency accredits the agencies that verify this, so good metering keeps you safely inside the limit.
Is a PESO licence required for hydrogen storage?
Yes, where hydrogen is stored in pressure vessels beyond the limits in the Static and Mobile Pressure Vessels (Unfired) Rules, 2016. Compressed gas storage is licensed in Form LS-1A, granted by the Chief Controller of Explosives or a Controller he authorises. The June 2025 amendment, G.S.R. 374(E), added rules for compressed and liquefied hydrogen and extended licence validity from five to ten years. You will need a registered title or lease document and the layout. Your engineers supply the technical drawings and we handle the filing.
What is the SIGHT programme?
SIGHT stands for Strategic Interventions for Green Hydrogen Transition, the main incentive programme under the National Green Hydrogen Mission. It has an outlay of ₹17,490 crore out of the Mission’s ₹19,744 crore and two financial incentive mechanisms: one for domestic manufacturing of electrolysers and one for production of green hydrogen. Incentives come through bids, not on application. We get your company, consent and financial papers ready so the bid is not let down by missing documents.
Do I need a separate company for the plant?
No law requires it, though most developers set one up. A separate private limited company keeps the plant’s assets, loans and contracts apart from the group’s other businesses, which lenders and offtake buyers like. If you are adding hydrogen inside an existing factory, your current entity may work, and we will tell you which route suits you.
Which pollution category does a green hydrogen plant fall in?
Your State Pollution Control Board confirms the category for your process and capacity. CPCB places industries in Red, Orange, Green or White by pollution index; White units need only an intimation. The category decides the fee, documents and processing time. Since the January 2026 amendment, a Consent to Operate stays valid until cancelled. We confirm the category with the Board before filing.
How long does the full set of approvals take?
Plan for several months, run in parallel with design and construction. Two legal clocks run in your favour: pollution consent is deemed granted after four months under Section 25(7) of the Water Act, and factory plan permission is deemed granted after three months under Section 6(2) of the Factories Act. The real delays come from incomplete land papers and late drawings, so starting the corporate and consent files early keeps approvals off your critical path.
Does Taxhint design the plant or carry out safety studies?
No. We are a CA and CS firm, so we handle company formation, applications, documents, portal filings, liaison with departments and ongoing compliance. Plant design, hazard studies, testing and emission verification are done by your engineers, accredited agencies and the authorities themselves. We coordinate with them and turn their reports into complete applications, so every filing goes in complete and on time.
What it costs
Our fee plus the government fee that applies to your case, quoted before you commit. Tell us the situation and we will price it exactly.
Ready to begin?
Share your site, capacity and timeline, and we will send a written approvals roadmap for your green hydrogen plant.