India Plans 7.24 Lakh MT Green Ammonia Procurement to Slash Urea Imports
The Indian government is taking a monumental step toward decarbonising its agriculture sector by launching a massive roadmap for Green Urea production. By integrating the National Green Hydrogen Mission with fertiliser manufacturing, the Centre aims to achieve technological self-reliance and reduce the nation's heavy dependence on costly urea imports.
A Strategic Roadmap for Green Urea Production
The Department of Fertilisers (DoF) has officially issued an Invitation for Expression of Interest (EOI) to establish Green Urea plants across the country. To kickstart this transition, the government has proposed an annual procurement target of 7.24 lakh metric tonnes (MT) of Green Ammonia. This initiative is designed to modernise India's fertiliser landscape, much of which relies on aging plants that are over 30 years old. Currently, India is forced to import approximately 1 crore MT of urea every year, a gap this new roadmap seeks to bridge through sustainable, domestic production.
Bridging the Cost Gap: The Differential Subsidy Model
One of the primary hurdles in transitioning from "Grey Ammonia" (fossil-fuel based) to "Green Ammonia" (renewable-based) is the significantly higher production cost. To ensure that domestic fertiliser manufacturers are not penalized for going green, the government has proposed a clever differential subsidy mechanism.
Under this framework, the Solar Energy Corporation of India (SECI) will procure Green Ammonia from producers and supply it to domestic manufacturers at prices linked to conventional Grey Ammonia. The Department of Fertilisers will then step in to bridge the cost difference, ensuring cost parity for manufacturers. Furthermore, incentives under the NGHM Green Ammonia Mode 2A will provide long-term certainty, with benefits starting from the date of commercial supply and continuing for 10 years under binding agreements.
Massive Financial Backing and Infrastructure Support
This transition is backed by significant capital and inter-ministerial cooperation. The Ministry of New and Renewable Energy (MNRE) is set to provide ₹19,744 crore in financial support to bolster the green energy infrastructure required for this ecosystem.
The roadmap emphasizes integrated projects that combine renewable energy, green hydrogen, and carbon capture technologies. A successful blueprint is already in development: the 150-tonnes-per-day Green Urea pilot plant at Pudimadaka in Andhra Pradesh. Developed by NETRA (the R&D arm of NTPC), this facility integrates water electrolysis with carbon capture and utilisation, serving as a technological model for future large-scale projects.
Strengthening Energy and Food Security
By aligning the National Green Hydrogen Mission with the fertiliser sector, India is moving closer to its 2070 Net Zero target. The strategy does more than just lower emissions; it strengthens India's energy and food security by creating a circular, domestic supply chain that is less vulnerable to global market fluctuations and supply chain disruptions.
Key Takeaways
- Massive Procurement Target: The Centre plans to procure 7.24 lakh MT of Green Ammonia annually via competitive e-reverse auctions to fuel Green Urea production.
- Cost Parity Mechanism: A differential subsidy will ensure manufacturers can buy Green Ammonia at prices comparable to traditional Grey Ammonia, bridging the cost gap.
- Substantial Investment: With ₹19,744 crore allocated by the MNRE, the government is providing the necessary financial backbone to build a clean energy ecosystem for agriculture.