**Executive Summary**
The Department of Fertilizers has operationalised 11 projects under the National Green Hydrogen Mission through the exchange of Green Ammonia Purchase and Supply Agreements (GAPA/GASA). These 10-year agreements aim to provide 7,24,000 tonnes of green ammonia per annum to 13 fertilizer units at fixed, competitive prices. The initiative is designed to reduce carbon emissions, ensure long-term energy security, and save approximately $2.5 billion in foreign exchange over the next decade.
**Key Points / Main Content**
**National Green Hydrogen Mission (NGHM) Framework**
* The government has allocated an outlay of ₹19,744 crore for the NGHM.
* The mission targets the production of at least 5 million metric tonnes (MMT) of green hydrogen per annum by 2030.
* The initiative aims to position India as a global hub for green hydrogen and reduce dependence on imported fossil-based inputs.
**Agreement Terms and Pricing**
* The Solar Energy Corporation of India (SECI) conducted competitive bidding under the Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme.
* Discovered prices range from ₹49.75 to ₹64.74 per kg, significantly lower than the international benchmark of approximately ₹110 per kg.
* The agreements carry a tenure of 10 years, providing long-term demand assurance and price stability for domestic manufacturers.
**Strategic Sectoral Benefits**
* Transitioning from grey to green ammonia will significantly reduce the carbon footprint of the fertilizer industry.
* The move supports the domestic production of 165–170 LMT of Phosphatic and Potassic (P&K) fertilizers, reducing vulnerability to geopolitical market disruptions.
* The initiative is expected to attract new investment and players into the fertilizer sector, creating employment and expanding manufacturing capacity.
**Impact Analysis**
**Government of India (Department of Fertilizers, MNRE, SECI)**
**Impact**
The government advances its clean energy transition goals and strengthens national energy security and self-reliance.
**Action Required**
Must maintain close coordination between ministries to oversee the integration of green hydrogen derivatives into the fertilizer value chain.
**Fertilizer Companies (e.g., IFFCO, Coromandel International, Paradeep Phosphates)**
**Impact**
These entities gain access to a stable, fixed-price supply of ammonia, shielding them from the volatility of the global ammonia market and reducing production costs.
**Action Required**
Sign and operationalise the GAPA/GASA agreements to integrate green ammonia into their specific manufacturing units (e.g., Kandla, Paradeep, Kakinada).
**Green Ammonia Producers (e.g., ACME Cleantech, Jakson Green, NTPC Renewable Energy)**
**Impact**
Producers receive long-term demand assurance and investment security, allowing them to scale up domestic production capacity.
**Action Required**
Develop and manage the production infrastructure necessary to supply the allocated 7,24,000 tonnes per annum at the discovered bid prices.
**Farmers and the Agricultural Sector**
**Impact**
The sector benefits from improved stability in fertilizer availability and price, supporting long-term agricultural sustainability.
**Action Required**
No direct action required; stakeholders will benefit from the resulting "cleaner, greener future" and stabilized input supply chains.
Key Entities Referenced
National Green Hydrogen Mission (NGHM): The overarching national mission targeting the production of 5 million metric tonnes of green hydrogen per annum by 2030 to enhance India's energy security.
Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme: A specific initiative under NGHM that facilitated competitive bidding for the supply of green ammonia to fertilizer units at prices lower than international benchmarks.
Solar Energy Corporation of India (SECI): The implementing agency that conducted the bidding process and allocated 7,24,000 tonnes per annum of green ammonia capacity to various fertilizer units.
Department of Fertilizers (DoF): The primary government department leading the effort to integrate green hydrogen derivatives into the fertilizer value chain to reduce import dependence.
Green Ammonia Purchase and Supply Agreements (GAPA/GASA): Long-term 10-year legal instruments exchanged to operationalize green ammonia projects and provide investment security for domestic producers.
Ministry of Chemicals and Fertilizers
Decarbonizing India’s Fertilizer Sector and
Strengthening The Nation’s Energy Security
Historic Step Towards Sustainable Fertilizers, Energy Security
and Self-reliance - JP Nadda
Posted On: 31 MAR 2026 6:11PM by PIB Delhi
Historic decarburization efforts took a significant leap forward as the Department of Fertilizers
(DoF), Government of India, achieved a major milestone in advancing the country’s clean
energy transition with the exchange of Green Ammonia Purchase Agreements (GAPA) and
Green Ammonia Supply Agreements (GASA) between fertilizers companies and green ammonia
producers. These agreements mark a crucial step toward operationalising Green Hydrogen and
Green Ammonia projects under the National Green Hydrogen Mission (NGHM).
Exchange of Green Ammonia Agreements (11 projects) for the fertilizers sector under the
National Green Hydrogen Mission took place at New Delhi in the august presence of Hon’ble
Union Minister of Chemicals & Fertilizers, Shri JP Nadda; Hon’ble Union Minister of New and
Renewable Energy Shri Pralhad Joshi; and Hon’ble Minister of State for Power and New &
Renewable Energy.Senior officials including Shri Rajat Kumar Mishra, Secretary, Department of Fertilizers, and
Shri Santosh Kumar Sarangi, Secretary, Ministry of New and Renewable Energy, were also
present, alongside CMDs/CEOs of Fertilizers units and green ammonia producers.
During the agreement signing ceremony, Hon’ble Union Minister of Chemicals and Fertilizers, Shri J. P.
Nadda, said:
“The exchange of Green Ammonia Agreements marks a historic step in India’s journey towards
sustainable fertilizer production. By integrating green ammonia into our supply chains, we are not only
reducing carbon emissions but also ensuring long-term energy security and self-reliance. This initiative
reflects the Government’s unwavering commitment to building a cleaner, greener future for our farmers
and for the nation.”
https://x.com/JPNadda/status/2038624732539720042?s=20India currently produces approximately 165–170 LMT of Phosphatic and Potassic (P&K)
fertilizers, including DAP and NPK variants. However, a significant portion of domestic
production remains dependent on imported ammonia. Ongoing geopolitical developments have
disrupted the global ammonia market, leading to volatility in both availability and prices, which
in turn affects the stability of fertilizer production in India.
To address this challenge, Indian fertilizers companies have entered into long-term agreements
for the supply of green ammonia at fixed prices for a period of 10 years. This strategic move is
expected to ensure a stable and reliable supply of ammonia, thereby supporting consistent
domestic production of P&K fertilizers and helping maintain price stability in the Indian market.
In addition, the adoption of green ammonia offers several broader benefits. It will help conserve
foreign exchange by reducing import dependence, promote self-reliance in the fertilizer sector,
and create new employment opportunities. Furthermore, it is likely to encourage investments in
the development of green ammonia production capacity within the country. A stable supply
environment will also attract new players to the fertilizers sector, leading to the establishment of
additional manufacturing units in the future.
Overall, this transition towards green ammonia marks a significant step towards strengthening
India’s fertilizer security, enhancing sustainability, and building long-term resilience in the sector.
The agreements mark a key milestone in advancing green ammonia domestic production
capacity and reducing import dependence.
The Government of India is implementing the NGHM with an outlay of ₹19,744 crore, targeting
the production of at least 5 million metric tonnes (MMT) of green hydrogen per annum by
2030. The Mission is designed to position India as a global hub for green hydrogen and its
derivatives, while enabling sustainable growth and reducing dependence on imported fossil-
based inputs.
The Department of Fertilizers, through close coordination with MNRE, SECI, and fertilizer
manufacturers, is taking a decisive step toward building a low-carbon, future-ready fertilizer
sector. This initiative marks a major leap in integrating green hydrogen derivatives into India’s
fertiliser value chain and reinforces the nation’s commitment to clean energy transition.Key Highlights
Under the Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme, the
Solar Energy Corporation of India (SECI) conducted competitive bidding for the supply of
green ammonia to fertilizer units nationwide.
The bidding process discovered highly competitive prices, ranging from ₹49.75 – ₹64.74 per
kg, significantly lower than international benchmarks (approx. ₹110 per kg).
SECI has allocated a total capacity of 7,24,000 tonnes per annum (TPA) of green ammonia
supply, linked to 13 fertilizer units across the country.
The agreements exchanged today, with a tenure of 10 years, provide long-term demand
assurance, transparency, and investment security for scaling up green ammonia production.
This initiative is expected to generate foreign exchange savings of approximately $2.5 billion
over 10 years, by substituting imported grey ammonia in non-urea fertilizer units.
Major Benefits for Fertilizer Sector
This initiative is expected to:
Significantly reduce carbon footprint of the fertilizer industry
Enable transition from grey to green ammonia
Strengthen India’s position as a competitive global supplier
Result in foreign exchange savings of ~$2.5 billion over 10 years through reduced ammonia imports
Support long-term sustainability and self-reliance in fertilizer production
The following companies are scheduled to sign the agreements:
S. Name of Manufacturing Unit Quantity of Developer / Discovered
Fertilizer Green Winner Price
No.
Company Ammonia (Rs/kg)
(MT per year)
1. Indian Farmers Kandla (Gujarat) 1,00,000 ACME 54.73
Fertiliser Cleantech
Cooperative
Limited (IFFCO) Paradeep (Odisha) 1,00,000 ACME 49.75
Cleantech
2. Coromandel Kakinada (Andhra 85,000 Jakson Green 50.75
International Pradesh) & OCIOR
Limited (CIL)
Vishakhapatnam 50,000 ACME 51.89
(Andhra Pradesh) Cleantech3. Paradeep Paradeep (Odisha) 75,000 ACME 55.75
Phosphates Cleantech
Limited (PPL)
Zuarinagar (Goa) 25,000 ACME 62.84
Cleantech
Paradeep Mangalore 15,000 SCC 57.65
Phosphates Infrastructure
Limited (PPL) Pvt. Ltd
4. Ostwal Krishna Phoschem 70,000 NTPC 51.80
Limited, Meghnagar Renewable
(Madhya Pradesh) Energy
Madhya Bharat Agro 60,000 Oriana Power 52.25
Products Limited-II, Limited
Sagar (Madhya
Pradesh)
Madhya Bharat Agro 70,000 SCC 53.05
Products Limited-III, Infrastructure
Dhule (Maharashtra) Ltd
6. Indorama India Haldia (West Bengal) 20,000 ACME 64.74
Private Limited Cleantech
(IIPL)
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Neeraj Kumar Bhatt/Shatrughna Prasad
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