UP & Japan Deepen Green Hydrogen, Industrial Ties

Uttar Pradesh is actively working to significantly enhance its green hydrogen collaboration with Japan, moving beyond initial research to encompass pilot projects, technology deployment, and substantial commercial investments. This strategic expansion also includes plans for a dedicated ‘Japan City’ within the Yamuna Expressway Industrial Development Authority (YEIDA) region.

This initiative seeks to attract Japanese businesses across critical sectors, including semiconductors, electronics, data centers, and advanced manufacturing. Several Japanese companies, such as Escorts Kubota and Minda Corporation, already have manufacturing projects underway in the YEIDA area, contributing to a growing pipeline of Japanese investment.

Expanding Green Hydrogen Collaboration

The state aims to broaden its green energy partnership with Japan, following a Memorandum of Understanding (MoU) signed with Japan’s Yamanashi prefecture in December 2024. This collaboration is set to expand into joint research, pilot projects, and commercial ventures.

Key developments in green hydrogen include:

• Two Green Hydrogen Centres of Excellence have been established.
• These are located at IIT Kanpur-HBTU Kanpur and IIT-BHU-MMMUT Gorakhpur.
• Each centre has received Rs 50 crore in state funding.
• Major companies like NTPC, BPCL, Torrent Power, Hygenco, L&T Green Energy, Avaada, and ReNew E Fuels have expressed interest in green hydrogen projects.

The Uttar Pradesh Green Hydrogen Policy 2024 outlines ambitious targets, aiming for 1 million tonnes of annual green hydrogen and green ammonia production capacity by 2028. The policy also plans for the establishment of four Centres of Excellence.

‘Japan City’ to Boost Manufacturing Investments

The proposed ‘Japan City’ in the YEIDA region is envisioned as a 500-acre dedicated industrial ecosystem. This area will serve as a hub for Japanese investors, leveraging Uttar Pradesh’s extensive industrial land bank and developing manufacturing and logistics clusters along expressways.

Significant existing Japanese investments underscore this growing partnership:

• Escorts Kubota is investing Rs 2,025 crore in a plant in YEIDA’s Sector 10.
• This plant aims to produce 60,000 tractors and 15,000 construction equipment units annually in its first phase.
• The project is expected to create 3,829 direct jobs and add over Rs 7,756 crore to the Gross State Value Added.
• Minda Corporation has proposed a Rs 1,166 crore investment across two projects in Sectors 10 and 24.
• Minda Corporation’s projects anticipate approximately 6,440 new employment opportunities.

Chief Minister Yogi Adityanath emphasized the state’s large, skilled youth workforce. He noted the intention to introduce them to Japanese work ethics and manufacturing standards, including practices such as Kaizen, 5S, lean manufacturing, robotics, automation, and precision engineering.

Uttar Pradesh’s Economic Trajectory

Uttar Pradesh’s economic growth provides a robust foundation for these international collaborations. The state has demonstrated significant progress across various economic indicators.

Key economic highlights include:

• Gross State Domestic Product (GSDP) increased from Rs 13.3 lakh crore in 2016-17 to Rs 30.8 lakh crore in 2024-25.
• The state boasts over 9.6 million MSMEs.
• Uttar Pradesh is home to more than 22,000 startups.
• It accounts for 55% of India’s mobile phone production.

This comprehensive strategy to deepen ties with Japan, particularly in green hydrogen and advanced manufacturing, positions Uttar Pradesh for continued economic expansion and technological advancement.