The transport sector has been widely touted to be decarbonized by green hydrogen. Technologies like fuel cell electric vehicles (FCEV) and hydrogen internal combustion engine vehicles (HICEV) are gaining momentum, with significant potential in areas like public transport and long-haul trucking. However, the sector is held back by high capital expenditure requirements, infrastructure deficits and lack of production scale. The initial cost of hydrogen-powered vehicles remains much higher than ICE. To address these issues, the Ministry of New and Renewable Energy (MNRE) published new guidelines in February 2024. Pursuant to the National Green Hydrogen Mission (NGHM), the guidelines aim to support pilot projects using green hydrogen in transport.

Piloting new solutions for transport
The scheme guidelines offer financial support for the adoption of FCEV and HICEV technology in buses and trucks, and for the development of refueling infrastructure. They also support other uses of green hydrogen, like fuel blends using green hydrogen-derived methanol and ethanol. The government has allocated $56 million for the two-year scheme. It will be executed by the Ministry of Road Transport and Highways (MoRTH) along with implementing agencies like the Solar Energy Corporation of India  (Seci).

The objective of the guidelines 
The goal is to nurture pilot projects that will pave the way to a green hydrogen transport ecosystem. This would generate price signals for investors and OEMs, and spotlight key issues around technology, safety and efficiency. It would clarify the commercial viability of new technologies and identify opportunities to scale up. It may also help to shape industry standards for safety and lead to new approval procedures for vehicles and infrastructure. Ultimately, it should strengthen collaboration between the government, OEMs and other partners, which is critical for the new hydrogen mobility ecosystem .

How the scheme guidelines work
The scheme is open to central and state public sector undertakings, as well as private entities. It offers viability gap funding to address the high capital costs of hydrogen fuel vehicles and infrastructure. It is to be supervised by a Steering Committee under MoRTH and MNRE. Each project is evaluated and recommended by a Project Appraisal Committee, which also monitors it for subsequent fund allocation. The implementing agency and the beneficiary identify routes for project development, to be finalized by MoRTH. The project must be completed within two years of award receipt .

The first trials get underway 
In March 2025, MNRE sanctioned five pilot projects under the scheme, involving 37 buses and trucks (15 FCEV and 22 HICEV), and nine refueling stations . The winning bidders included OEMs like Tata Motors and Ashok Leyland; oil majors like Indian Oil and Hindustan Petroleum; and renewable pioneers like the Agency for New and Renewable Energy Research and Technology. The pilots cover 10 key routes – Noida-Delhi-Agra; Bhubaneshwar-Konark-Puri; Ahmedabad-Vadodara-Surat; Sahibabad-Faridabad-Delhi; Pune-Mumbai; Jamshedpur-Kalinga Nagar; Kochi-Edappally; Thiruvananthapuram-Kochi; Jamnagar-Ahmedabad; and Visakhapatnam-Bayyavaram. 

BOX: The leaders in India’s hydrogen vehicle space
Several Indian automotive majors are developing hydrogen-powered vehicles with support from NGHM. Chennai-based Ashok Leyland has focused its energies on long-haul freight transport. It is collaborating with Reliance Industries to develop HICEV trucks. The company launched a prototype in 2023 and aims for commercial launch by 2026. It is building a manufacturing plant for hydrogen vehicles in Lucknow . 

Tata Motors has explored both FCEV and HICEV technology. It is partnering with Cummins on medium and heavy-duty HICEV commercial vehicles. It recently launched a major pilot project under the scheme guidelines, deploying green hydrogen vehicles on 16 freight routes. The two-year trial will use both HICEV and FCEV trucks and enable comparative evaluation of the different systems in diverse operating conditions .

In urban mobility, Hyderabad-based Olectra Greentech is working to bring hydrogen fuel cell technology for public transport. Olectra is currently developing hydrogen-powered buses in partnership with Reliance Industries. These buses are equipped with advanced type-4 hydrogen cylinders, with a range of 400km and a refueling time of 15 minutes .

Sources

• • Ministry of New & Renewable Energy 2024. “Scheme Guidelines for Pilot Projects on use of Green Hydrogen in the Transport Sector". Government of India.
  • Mandal, Anish 2025. "Impact of the new green hydrogen pilot project guidelines on India’s transport sector". Deloitte India
  • Prism 2024. "MNRE issues Scheme Guidelines for pilot projects on use of green hydrogen in the transport sector". JSA Advocates and Solicitors.
  • PIB 2025. "Pilot Projects on Hydrogen Fuelled Buses and Trucks Launched under the National Green Hydrogen Mission". Ministry of New and Renewable Energy, Government of India.
  • Jacob, Shine 2024. "Ashok Leyland to launch first H2- powered truck in the next 2 years". Business Standard.
  • Jessen, Jasmin 2025. "Tata Motors: Hydrogen-Powered Heavy Duty Trucks in India". Sustainability Magazine.
  • The Hindu Bureau 2023. "Olectra Greentech unveils Hydrogen bus". The Hindu.