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Time of India
11 hours ago
- Business
- Time of India
DeepDive: India's green hydrogen journey starts at ₹397 per kg
Mumbai: India's recent green hydrogen price discovery through Indian Oil Corporation 's (IOCL) landmark tender has drawn mixed reactions from industry experts, reflecting both optimism about market potential and concerns over long-term competitiveness. The final price — ₹397/kg which is about $4.67/kg — discovered in the reverse auction process is being seen as a turning point for India's emerging green hydrogen sector. India's bid seen as globally competitive According to Ravi Shekhar , managing director of Eninrac Consulting, L&T's $4.67/kg green hydrogen bid is globally competitive, lower than EU imports and close to Middle East prices. 'India, led by players like L&T Energy Green Tech , is emerging as a competitive hub for green hydrogen production. With a price of $4.67/kg (₹397/kg), L&T's hydrogen offering is already aligned with global low-cost producers such as Saudi Arabia and the UAE, whose prices range between $4.50–$6.00/kg,' he said. He added that when factoring in logistics and import costs, Indian green hydrogen was cheaper than most EU imported hydrogen, which landed at ₹500/kg to ₹600/kg. This cost advantage is further reinforced by India's ultra-low solar tariffs of ₹2.5 to ₹3 per unit, among the lowest globally, which significantly reduce the cost of electrolysis-based hydrogen production. However, not all stakeholders are as optimistic. Green v/s grey Prashant Vasisht, senior vice-president and co-group head at ICRA, said that the prices discovered recently were in line with current trends and almost double the price of grey hydrogen derived from natural gas and therefore not very competitive. He said that economics and technology were yet to refine further for green hydrogen to become competitive. 'The price of green hydrogen is still some time away from attaining parity with grey hydrogen. Importantly, renewable electricity prices have to reduce substantially along with the capex of electrolysers among other things for green hydrogen to become competitive,' he said. In contrast, Nitin Yadav, head of hydrogen - India at Gentari, a clean energy company and a wholly-owned subsidiary of Petronas, called the price discovery a 'significant milestone' and said that their initial assessment suggested the prices were 'quite competitive'. 'The price discovery through the IOCL tender sends a strong signal to project developers that green hydrogen has a viable business case in India. The finalisation of this tender has instilled much-needed confidence in the market and laid the groundwork for scaling the hydrogen economy,' said Yadav. He added that the price discovery should lead to an increased demand for in-situ green hydrogen projects in India. Shekhar said that between 2024 and 2027, early industrial adopters, particularly in refineries and fertilizer production will drive initial demand for green hydrogen. 'This foundational uptake will be critical for de-risking investments, with $2–3 billion expected to flow into domestic electrolyzer manufacturing. By 2030, deeper decarbonization in hard-to-abate sectors like steel and transport will take shape, positioning India to capture 5-10% of the global electrolyzer market,' he added. Impact on offtake Regarding impact on offtake, ICRA's Vasisht added that as prices were significantly higher, offtake agreements would remain limited. 'If we aim for competitive pricing, the offtake must be firm and committed for the full 25-year term,' said Gentari's Yadav. He added that there should be more competition in this sector amongst project developers, which would help the green hydrogen ecosystem as well as the consumers. On offtake, Shekhar added that the Panipat project's 25-year offtake deal at ₹397/kg with IOCL would secure price certainty and enhance project bankability, setting a credible pricing benchmark for future bids. With scale-driven efficiencies and larger capacities, prices might fall below ₹350/kg, he added.
New Indian Express
4 days ago
- Health
- New Indian Express
Odisha's Bhadrak to get government medical college, university soon, says CM
BHUBANESWAR/BHADRAK : Chief Minister Mohan Charan Majhi on Monday said the demand for the establishment of a medical college and a public university in Bhadrak will be fulfilled soon. Addressing a public meeting while launching 13 projects worth around Rs 275 crore for the district, Majhi said foundation stone for the medical college and hospital will be laid soon. He said the state government has already sanctioned several high-profile projects for the district which include a technical textile complex by IOCL at an investment of Rs 4,377 crore and an HMLS polyester yarn production unit by MCPI Private Limited with an investment of Rs 2,223.25 crore. They will create around 4,300 and 1,150 jobs respectively. He also announced plans for the beautification of all martyrs' sites in the district. 'The BJP government has been working tirelessly to fulfil the promises made to the people. Not a single minute has been wasted from the day our party assumed office. Our government is dedicated to serving the people,' he said.
Fibre2Fashion
4 days ago
- Business
- Fibre2Fashion
India's LAB prices dip amid rising imports & softening feedstock costs
India's surfactant sector still relies heavily on linear alkyl benzoene (LAB), with local demand expected to reach over 720 KTA in fiscal 2024 (FY24) and 767 KTA in fiscal 2025 (FY25) with a growth rate of CAGR 6.53 per cent. Due in large part to India's expanding presence in the global soap and detergent industry, the market has demonstrated resilience in the face of global challenges. India's LAB demand is rising, but prices fell from ₹132/kg (~$1.55/kg) in Jan to ₹129/kg (~$1.51/kg) in May 2025 due to weak upstream costs, rising regional supply, and cautious buyer sentiment. Imports are expected to ease with IOCL's capacity ramp-up. Prices may drop ₹3â€'7/kg (~$0.04â€'$0.08/kg) from Junâ€'Aug 2025 amid stable but soft LABSA demand and higher feedstock availability. In fiscal 2023 (FY23), Indian Oil Corporation Ltd (IOCL) increased its LAB production capacity from 120 KTA to 162 KTA in order to meet the growing demand. However, India's LAB production fell to 400 KTA in FY23 from 457 KTA the year before as a result of planned shutdowns and de-bottlenecking efforts. With the exception of Reliance Industries Ltd's 60 KTA halted plant, the domestic operating rate was 93 per cent. This shortfall in production was offset by a rise in imports, which peaked at 337 KTA in FY23. With IOCL's capacity enhancement now complete, imports are expected to moderate, reflected in a projected 281 KTA and 310 KTA import level for FY25 and fiscal 2026 (FY26). Current Market Drivers (as of April–May 2025): From January to April 2025, Indian Linear Alkyl Benzene (LAB) prices showed a moderating trend. Starting the year at around ₹132 per kg in Jan 2025. However, by April 2025, a notable downward correction occurred. The decline continued into May 2025 around ₹129 per kg. This sustained reduction aligns with broader market dynamics, including weaker upstream costs, increased regional supply post-turnarounds, and softening buyer sentiment. Despite earlier resistance from suppliers, the growing supply and downward pressure on feedstock prices have begun to weigh on LAB prices in the Indian market. Downward Pressure on Prices: Falling Naphtha Prices: A major feedstock for LAB production, naphtha prices have declined significantly due to weak crude markets and improved refining margins. Negative Market Sentiment: Buyers are cautious, driven by sluggish demand recovery and global economic uncertainties. Plant Restarts in Asia: Key LAB production facilities in Asia have resumed operations post-maintenance, boosting regional supply. Expected LAB Price Trend in India (June–August 2025) Forecast: Indian Linear Alkyl Benzene (LAB) prices are expected to remain under pressure or decline modestly in the next quarter (June to August 2025), Overall, a gradual decline of ₹3–7/kg is expected over the next quarter. Reasons for the Expected Trend: 1. Weak Upstream Cost Support: Benzene and naphtha prices are on a declining trajectory Lower feedstock prices reduce cost push on LAB, encouraging sellers to lower offers. 2. Rising Regional Supply: Post-turnaround plant restarts in China and South Korea have increased LAB availability in the Asian market. Greater availability of feedstock normal paraffins may ease production constraints, further softening prices. 3. Buyer Sentiment & Inventory: Indian buyers remain cautious and price-sensitive, with ample inventory coverage. Expectation of lower offers is delaying procurement, reinforcing downward price pressure. 4. Stable but Soft Downstream LAS Demand: While the LABSA market is steady. Buyers are continuing to seek price reductions, aligning with upstream softness. Fibre2Fashion News Desk (VK)
Time of India
4 days ago
- Business
- Time of India
CM announces plan for med college in Bhadrak
Bhubaneswar: CM Mohan Charan Majhi on Monday announced plans to set up a university and a medical college and hospital in Bhadrak district. He made the announcement while inaugurating and laying foundation stones for 13 development projects in Bhadrak's Baliapada worth Rs 275 crore. Tired of too many ads? go ad free now Among the projects announced — a technical textile complex by IOCL and an HMLS polyester production facility by MCPI Pvt Ltd — are expected to generate substantial employment opportunities for locals. "Development in Bhadrak has gained momentum under our administration. In just 120 days, we initiated projects worth over Rs 80,000 crore across the state," the CM said. Majhi also announced plans for the beautification of all martyr sites in Bhadrak, emphasising the district's historical significance. The development package includes infrastructure improvements such as roads, sports facilities, health centres, a library and a memorial park dedicated to Harekrushna Mahatab, Odisha's first CM. Higher education minister Suryabanshi Suraj praised Bhadrak's rich heritage and expressed confidence in the district's development trajectory. "The new projects reflect our govt's commitment to fulfilling the aspirations of Bhadrak's people," he said. Majhi criticised the previous govt for focusing on superficial changes, stating that his govt is committed to bringing about real development. Looking ahead, the CM outlined his vision for a prosperous Odisha by 2036, with Bhadrak playing a crucial role in the transformation. The govt plans to present a detailed progress report to the public on June 12, highlighting achievements in agriculture and allied industries. Officials said Monday's announcement marks a significant step forward in Bhadrak's development journey, promising to enhance both educational opportunities and industrial growth.
Hans India
4 days ago
- Business
- Hans India
Odisha CM launches Rs 275 crore projects in Bhadrak
Odisha Chief Minister Mohan Charan Majhi on Monday inaugurated and laid the foundation stone for 13 developmental projects worth around Rs 275 crore at Balia Pada in Bhadrak district. Among the 13 initiatives, nine were inaugurated while foundation stones were laid for four new projects. During the event, the Chief Minister made several major announcements for Bhadrak, including the establishment of a government university and the much-anticipated medical college, for which the foundation stone will be laid soon. Highlighting industrial development in the district, Majhi announced that Indian Oil Corporation Ltd (IOCL) will invest Rs 4,377 crore to set up a Technical Textile Complex in Bhadrak. Additionally, MCPI Private Limited will establish an HMLS polyester manufacturing unit with an investment of around Rs 2,224 crore. He also announced the beautification of all martyr memorial sites in Bhadrak, adding cultural and heritage significance to the region. "Since our government came to power, we have fast-tracked Bhadrak's development, a land known for revolutionaries. We are committed to fulfilling every promise made to the people without wasting a single moment," he said during his address. He also highlighted major decisions taken by the state government in the last 12 months, which include the launching of Subhadra Yojana, providing farmers Rs 800 more per quintal of paddy, opening all four gates of the Jagannath Temple, and allocation of Rs 500 crore corpus fund for rituals and services at the Jagannath Temple. The Chief Minister announced that a detailed report on the government's one-year achievements will be presented to the public on June 12. Speaking on the state's development vision, Majhi said, 'Livelihood and employment are vital for growth. We are continuously working to improve citizens' financial well-being through agriculture, allied activities, and industrial development.' He criticised the previous government for spending 24 years "only painting pictures of development" under the guise of providing world-class education and healthcare, without delivering concrete outcomes. 'True development has just begun,' he asserted. 'In the next few years, Odisha's primary education landscape will be completely transformed—not with flashy slogans, but with real outcomes,' he said, targeting the earlier regime's 5T (Technology, Teamwork, Transparency, Time, and Transformation) campaign. Highlighting the government's industrial momentum, he said, 'In just 120 days, under the 'Utkarsa Odisha' initiative, projects worth over Rs 80,000 crore have been launched. On May 22 alone, 10 projects worth Rs 1.65 lakh crore received approvals. This marks the beginning of an industrial revolution in Odisha, with every district, including Bhadrak, being part of this transformative journey.'
