**Executive Summary**
The Department of Fertilizers (DoF) conducted a high-level Pre-Expression of Interest (EOI) meeting on June 26, 2026, to establish a roadmap for Green Urea production in India. The initiative seeks to achieve carbon neutrality and sustainable agriculture through coordinated government funding, differential pricing mechanisms, and the National Green Hydrogen Mission. Key action items include managing a procurement target of 7.24 Lakh MT/annum of Green Ammonia through competitive auctions.
**Key Points / Main Content**
**Government Funding and Policy Support**
* **MNRE Allocation:** The Ministry of New & Renewable Energy has committed ₹19,744 crore to strengthen green energy infrastructure.
* **DoF Mandate:** The Department of Fertilizers is tasked with creating a market-parity framework to integrate Green Ammonia into the national manufacturing chain.
* **Strategic Alignment:** The roadmap supports India’s Net Zero target by 2070 and the National Green Hydrogen Mission.
**Pricing and Economic Viability**
* **Differential Pricing:** An Offtaker-Side Differential Pricing Mechanism was discussed to address the higher cost of Green Ammonia compared to conventional Grey Ammonia.
* **SECI Intervention:** The Solar Energy Corporation of India (SECI) will purchase Green Ammonia and supply it to domestic companies at standard market-linked Grey Ammonia prices.
* **Urea Parity:** A similar price-shielding mechanism is being explored for Green Urea to ensure it remains competitive.
**Producer Incentives and Procurement**
* **Direct Incentives:** Financial support is provided under NGHM (Green Ammonia Mode 2A) for greenfield and under-construction projects.
* **e-Reverse Auction:** SECI will manage the procurement of 7.24 Lakh MT/annum of Green Ammonia via a transparent bidding process.
* **Long-term Certainty:** Benefits are secured for 10 years through binding definitive agreements (GAPA/GASA) to build developer confidence.
**Technical and Infrastructure Roadmap**
* **Pudimadaka Pilot Plant:** A 150 TPD facility in Andhra Pradesh serves as the benchmark for Carbon Capture and Utilization (CCUS) and water electrolysis.
* **Feedstock Requirements:** World-scale urea plants (12.7 lakh MT capacity) require nearly 10 lakh MT of captured $CO_2$ annually as feedstock.
* **Import Substitution:** The initiative aims to reduce India's reliance on urea imports, which currently stand at approximately 1 crore MT annually.
**Impact Analysis**
**Department of Fertilizers (DoF) and MNRE**
**Impact**
Responsible for the financial and institutional architecture required to make green production economically viable.
**Action Required**
Must finalize the market-parity framework and oversee the distribution of the ₹19,744 crore infrastructure fund.
**Fertilizer Manufacturing Companies**
**Impact**
Affected by the transition from fossil-fuel-based Grey Ammonia to sustainable Green Ammonia; protected from high costs by differential pricing.
**Action Required**
Units must integrate green feedstocks and participate in the Expression of Interest (EOI) for plant establishment.
**Solar Energy Corporation of India (SECI)**
**Impact**
Serves as the primary intermediary for procurement and price stabilization.
**Action Required**
Conduct e-Reverse Auctions for the 7.24 Lakh MT/annum procurement target and manage binding 10-year agreements with producers.
**Investors and Technology Providers**
**Impact**
Presented with opportunities to lead integrated projects involving renewable energy, green hydrogen, and carbon capture.
**Action Required**
Leverage support under the National Green Hydrogen Mission to develop integrated Green Urea projects and carbon capture infrastructure.
Key Entities Referenced
National Green Hydrogen Mission (NGHM): The overarching policy framework providing financial incentives (specifically Green Ammonia Mode 2A) to support green energy infrastructure and urea production.
Department of Fertilizers (DoF): The primary government department tasked with creating the institutional framework and conducting the Expression of Interest for establishing Green Urea plants.
Solar Energy Corporation of India (SECI): The agency responsible for managing e-Reverse Auctions and implementing the Offtaker-Side Differential Pricing Mechanism for Green Ammonia procurement.
Pudimadaka, Andhra Pradesh: The location of the 150 TPD Green Urea pilot plant, which serves as the technical benchmark for the national Green Urea roadmap.
NTPC: The lead public sector organization whose R&D wing (NETRA) developed the benchmark pilot plant and is tasked with spearheading integrated green hydrogen and fertilizer projects.
Ministry of Chemicals and Fertilizers :
Department of Fertilizers
Government Exploring Roadmap to Make Green
Urea Production a Reality in INDIA
प्रव तथ: 26 JUN 2026 2:13PM by PIB Delhi
Marking a monumental shift toward sustainable agriculture, carbon neutrality, and technological self-reliance, the Department of
Fertilizers (DoF) successfully conducted a high-level Pre-Expression of Interest (EOI) Meeting for the Establishment of Green
Urea Plants in India at PDIL. The Meeting was chaired by Dr. K.K. Pathak-Joint Secretary (Department of Fertilizers) who is also
serving as Chairman & Managing Director-PDIL.
Earlier this week, Invitation for Expression of Interest was issued by the Department of Fertilizers for
establishment of Green Urea Plants in India. The Pre-EOI Meeting held at PDIL headquarters Noida
provided a great platform for majority of the Stakeholders from the Private as well as Public Sector
including NTPC, Solar Energy Corporation of India, Technology Suppliers of Ammonia-Urea, major
Indian Fertilizer companies and manufacturers of Electrolyzers, Green Hydrogen & Green Ammonia. The
massive turn-up online and off-line from prospective players across the entire value chain is a clear
indicator of the keen approach of everyone involved to bring this initiative to reality in near future.
Key Policy and Operational Highlights
1. Coordinated Government Support Across Ministries The discussions highlighted the financial
allocations from multiple ministries to make green production economically viable. The macro-level
funding commitments include:• Ministry of New & Renewable Energy (MNRE): ₹19,744 crore to accelerate critical
green energy infrastructure and strengthen India’s clean energy ecosystem.
• Department of Fertilizers (DoF): Tasked with creating the institutional and market-parity
framework to seamlessly integrate Green Ammonia into the national fertilizer manufacturing
chain.
2. Shielding Manufacturers Through a Differential Pricing Mechanism To address cost challenges and
protect local fertilizer units, a robust Offtaker-Side Differential Pricing Mechanism was discussed:
The Challenge: Green Ammonia currently costs more to produce than conventional Grey
Ammonia, making Green Urea uncompetitive without support.
The Solution: The Solar Energy Corporation of India (SECI), has already tendered—for purchasing
Green Ammonia from producers forsupplying it to domestic fertilizer companies at standard
market-linked Grey Ammonia prices (based on a two-week average of Platts and Argus indices, plus
customs duties and local transport costs). A somewhat similar mechanism may be explored for
Green Urea as well.3. Producer-Side Incentives with Tapering Support To encourage private sector participation, a direct
financial incentive scheme under the NGHM (Green Ammonia Mode 2A) was detailed. A total
procurement target of 7.24 Lakh MT/annum of Green Ammonia has been allocated through a
transparent, competitive e-Reverse Auction managed by SECI. Support will be provided across clear
project stages:
Development Stage: For new greenfield projects or those currently under construction.
Operational Stage: Cash incentives begin from the date of commercial supply.
Long-term Certainty: Benefits are secured for a 10-year period through a binding definitive
agreement (GAPA/GASA), giving developers strong market confidence.
Technical Foundation: The Pudimadaka 150 TPD Pilot Plant
Discussions also focused on technical processes, using the 150 TPD Green Urea pilot plant at
Pudimadaka, Andhra Pradesh—developed by NETRA (the R&D wing of NTPC)—as a benchmark. This
facility demonstrates the integration of advanced Carbon Capture and Utilization (CCUS) systems with
water electrolysis, supporting the use of carbonated fly ash, food-grade materials, and synthetic fuels.
This initiative represents a thoughtful and well-structured push toward carbon-neutral fertilizer
production, technological self-reliance, and a greener future for Indian agriculture.
Pre-Expression of Interest (EOI) Meeting Chaired by Shri Krishna Kant Pathak,
Joint Secretary, Department of Fertilizers for the Establishment of Green Urea
Plants Across India#GreenFertilizers #GreenUrea@JPNadda @OfficeofJPNadda
@AnupriyaSPatel @PIB_India @MIB_India pic.twitter.com/0svS6N058X
— Department of Fertilizers (@BharatUrvarak) June 25, 2026India’s Strategic Roadmap for Green Urea Production
India's Net Zero target by 2070 and the National Green Hydrogen Mission present a unique opportunity to
transform domestic urea production. While Green Hydrogen can replace fossil fuels in ammonia
production, Green Urea still requires carbon dioxide for synthesis, making an external CO₂ source
essential.
Captured CO₂ from thermal power, cement, and steel plants can serve as a sustainable feedstock for urea
manufacturing. A world-scale urea plant of 12.7 lakh MT annual capacity requires nearly 10 lakh MT of
CO₂ annually. As India continues to import around 1 crore MT of urea annually and many existing plants
are over 30 years old, significant new capacity will be required. If developed through the Green Hydrogen
route, the fertilizer sector could become one of the country's largest and most assured consumers of
captured CO₂.
Integrated projects combining renewable energy, Green Hydrogen, carbon capture, green ammonia, and
urea production can strengthen fertilizer and energy security while supporting India's climate goals.
Organizations such as NTPC, with expertise in power generation, renewable energy, Green Hydrogen, and
fertilizer investments through HURL, are well placed to lead such initiatives. Investors encouraged to
develop integrated Green Urea projects by leveraging support under the National Green Hydrogen
Mission and the evolving carbon capture framework.
***
Neeraj Kumar Bhatt/Gaurav Pandey/Shatrughna Prasad
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