THEBUSINESSBYTES BUREAU
NEW DELHI, JUNE 26, 2026
In a major push towards decarbonising India's fertilizer
sector and strengthening self-reliance in agricultural inputs, the Centre has
unveiled a comprehensive roadmap for Green Urea production, anchored by the
annual procurement of 7.24 lakh metric tonnes (MT) of Green Ammonia under the
National Green Hydrogen Mission (NGHM).
The Department of Fertilizers (DoF) recently convened a high-level
pre-Expression of Interest (EOI) meeting at Projects and Development India
Limited (PDIL) headquarters in Noida to accelerate the establishment of Green
Urea manufacturing facilities across the country. Chaired by Dr. K.K. Pathak,
Joint Secretary, Department of Fertilizers and Chairman and Managing Director
of PDIL, the meeting followed the issuance of an EOI inviting proposals for
setting up Green Urea plants.
The discussions drew participation from key stakeholders,
including NTPC, the Solar Energy Corporation of India (SECI), leading
fertilizer manufacturers, green hydrogen and ammonia technology providers, and
electrolyzer manufacturers, signalling strong industry interest in the
initiative.
At the heart of the proposed framework is the government's
plan to procure 7.24 lakh MT of Green Ammonia annually through a transparent
e-reverse auction to be conducted by SECI under NGHM Mode 2A. The procurement
is aimed at creating a reliable market for Green Ammonia, the primary feedstock
for Green Urea, while catalysing investments across India's emerging green
hydrogen ecosystem.
To bridge the current cost gap between Green Ammonia and
conventionally produced Grey Ammonia, the government has proposed an
offtaker-side differential subsidy mechanism. Under this arrangement, SECI will
procure Green Ammonia from producers and supply it to fertilizer manufacturers
at prevailing market-linked Grey Ammonia prices, with the Department of
Fertilizers reimbursing the price difference. Long-term producer-side incentives
of up to ten years are also proposed to enhance investment certainty.
The roadmap is backed by coordinated support from multiple
ministries. While the Ministry of New and Renewable Energy has earmarked ₹19,744
crore to strengthen green energy infrastructure, the Department of Fertilizers will frame
policies to integrate Green Ammonia into domestic fertilizer production.
The government also highlighted NTPC's 150-tonnes-per-day
Green Urea pilot plant at Pudimadaka in Andhra Pradesh, developed by its
R&D arm NETRA, as a model for future commercial projects. The facility
integrates Green Hydrogen production through water electrolysis with Carbon
Capture and Utilisation (CCUS), enabling captured carbon dioxide to be
converted into sustainable urea.
With India importing nearly 10 million tonnes of urea
annually and several domestic fertilizer plants requiring capacity expansion,
the Green Urea programme is expected to enhance fertilizer security while
advancing the country's Net Zero target by 2070. The initiative also opens up
significant opportunities for carbon capture integration, as a world-scale
Green Urea plant with an annual capacity of 12.7 lakh tonnes would require
nearly 10 lakh tonnes of captured CO₂ each year from thermal
power plants, cement
factories and steel plants.
The Department of Fertilizers said the Green Urea roadmap
marks a crucial step towards carbon-neutral fertilizer production,
technological self-reliance and the long-term sustainability of Indian
agriculture, with integrated renewable energy, Green Hydrogen, Green Ammonia
and carbon capture projects expected to drive the sector's next phase of
growth.
