Engineering and construction conglomerate Larsen & Toubro (L&T) announced on Monday, June 30, 2025, the incorporation of Panipat Green Hydrogen Pvt Ltd, a new wholly-owned subsidiary dedicated to advancing its green hydrogen and green ammonia initiatives. This strategic move underscores L&T's proactive engagement in India's burgeoning clean energy sector, aligning directly with the Central government's robust push for green hydrogen as a pivotal clean energy source.

The formation of Panipat Green Hydrogen Pvt Ltd follows L&T's earlier acquisition of a land parcel in Kandla, Gujarat, specifically earmarked for the development of large-scale green hydrogen and green ammonia projects. This site is strategically positioned to leverage India's renewable energy potential for electrolysis, facilitating the production of these critical clean fuels for domestic consumption and potential export.

This development occurs amidst the backdrop of the Indian government's ambitious National Green Hydrogen Mission, which aims to establish India as a global hub for green hydrogen production and utilization. The mission includes various pilot projects exploring green hydrogen's applications, particularly in hard-to-abate sectors like transportation, refining, and fertilizer production. L&T's entry as a major player is expected to significantly contribute to achieving the mission's targets, which include an annual production capacity of 5 million metric tons of green hydrogen by 2030.

In a related development, global credit rating agency Fitch Ratings recently affirmed L&T's long-term foreign and local currency Issuer Default Ratings (IDRs) at 'BBB+', maintaining a stable outlook. This affirmation highlights the company's robust financial health and stable operational outlook, providing a strong foundation for its substantial investments and diversification efforts into new, capital-intensive energy ventures like green hydrogen. L&T's established expertise in large-scale project execution and infrastructure development positions it uniquely to undertake complex green hydrogen and ammonia projects, from concept to commissioning.

The establishment of Panipat Green Hydrogen Pvt Ltd represents a significant commitment from one of India's industrial giants towards a sustainable energy future. It is anticipated to catalyze further investment and technological innovation within the domestic green hydrogen ecosystem, contributing to India's energy security and decarbonization goals.