By Dr. Priya Sharma, Energy Economist, IIT Bombay
Last Updated: 18 June 2025
Key Takeaways
- USD 1 billion commitment by AIIB to Maharashtra’s first large‑scale green hydrogen plant.
- 450,000 MT p.a. of new project capacity awarded in Q1 2025 under India’s National Green Hydrogen Mission.
- 50% climate‑finance target by AIIB in 2025 driving more sustainable infrastructure investments.
Breaking: AIIB Doubles Down on India’s Hydrogen Future
In a decisive move to accelerate India’s decarbonization, the Asian Infrastructure Investment Bank (AIIB) announced a USD 1 billion investment in a green hydrogen complex in Maharashtra. The facility—slated for commissioning in late 2027—will include electrolysis units powered by 500 MW of solar and wind capacity, delivering up to 100,000 tonnes of green hydrogen annually. State officials briefed Marksmendaily on the plan’s final‑investment decision and construction timeline marksmendaily.com.
“This landmark project marks a turning point in India’s clean‑energy journey,” said Praveen Pardeshi, CEO of NITI Maharashtra, in the briefing.
Why It Matters Now
India’s National Green Hydrogen Mission aims to produce 5 MMT of green hydrogen per year by 2030, leveraging over ₹ 8 lakh crore in investments and creating 600,000 jobs pib.gov.in. In Q1 2025 alone, authorities awarded projects totalling 450,000 MT p.a. capacity under the SIGHT Program, reflecting a 30% uptick over the same period last year asian-power.com.
5 Expert Insights
- Dr. Anuj Sharma, Joint Secretary, MNRE “AIIB’s financing fills a critical funding gap, allowing India to scale up electrolysis infrastructure rapidly.”
- Dr. Raghav Rao, Fellow, Council on Energy, Environment and Water (CEEW) “Green hydrogen will decarbonize fertilizer and steel industries, reducing CO₂ emissions by over 100 MMT by 2030.” energy.economictimes.indiatimes.com
- Lai Chung Han, AIIB Alternate Governor “We’re committed to directing 50% of our financing toward climate action by the end of 2025.” aiib.org
- Ms. Sunita Iyer, CEO, PowerGrid India “Grid integration of renewables for hydrogen production is our biggest technical challenge—and opportunity.”
- Prof. Meera Nair, Dept. of Chemical Engineering, IIT Delhi “Advanced catalysts and electrolyser designs can lower production costs below $2/kg within five years.”
What Happens Next?
- Phase I (2025–27): EPC contracts awarded; civil works and solar‑wind farm construction begin.
- Phase II (2027–30): Electrolyser commissioning; pipeline and storage network rollout.
- Phase III (2030+): Export hub development; ammonia synthesis for global markets.
Daily Digest
- 18 Jun: AIIB Board meets in Beijing to review climate‑finance portfolio.
- 20 Jun: MNRE to unveil revised green hydrogen incentives—watch for subsidy updates.
- 22 Jun: CEEW releases mid‑year market forecast for renewable energy investments.
Fact‑Check
| Claim | Source |
|---|---|
| AIIB USD 1 billion investment in Maharashtra plant | Marksmendaily briefing marksmendaily.com |
| ₹ 8 lakh crore Mission outlay; 5 MMT target by 2030 | Press Information Bureau, PIB pib.gov.in |
| 450,000 MT projects awarded in Q1 2025 | JMK Research & Analytics report asian-power.com |
| AIIB climate‑finance target of 50% by 2025 | AIIB Green Infrastructure policy aiib.org |
