Infrastructure development of green hydrogen projects require long term investments, but Indian banks are constrained by their ability to finance long gestation projects. Green hydrogen plants are heavily dependent on renewable energy projects which require long term financing as compared to banking sector’s ability to finance for 5 to 7 years. But banks can be helpful in originating these loans and then offload these loans via vehicles like alternative investment funds, among others. According to Bloomberg NEF data, in 2019-2021, Indian private banks made up 19 per cent of the sources of debt for new-build renewable energy projects in India while public sector banks made up 1 per cent. Foreign banks led at 39 per cent. In 2023-24 budget India has committed ~INR 75,400 crore for green growth in the country. INR 35,000 crore for priority capital investments towards energy transition and net zero objectives, and energy security by Ministry of Petroleum & Natural Gas. As green hydrogen is a sunrise sector INR 19,700 crore will facilitate transition to a green hydrogen economy. Green hydrogen projects need evolution of GH plant financing as renewable energy space has already evolved and established itself as a reliable investment. For GH projects to attain this level of traction there is a need for stronger contracts, increased investments, regulatory support and established financing mechanism. With increased foreign bank participation in India, this opportunity can be converted to a commercial arrangement which can be fruitful in accelerating adoption of GH in India. With high risk of GH projects now due to offtake uncertainties of hydrogen, will the developers be able to honor the agreement of payment to banks at the right time without default. Hence, government plays critical role in managing this offtake risk and it may lead to increased participation of private banking and financial sector in India.