India Takes a Big Step Toward Green Urea — 7.24 Lakh MT Green Ammonia Procurement Announced Under NGHM Mode 2A
Urea is the backbone of Indian agriculture. Every kharif season, every rabi season — farmers across the country depend on it. And right now, almost all of it is made using fossil fuels — grey ammonia derived from natural gas or coal.
That is what India is now working to change.
On June 26, 2026, the Department of Fertilizers (DoF) conducted a high-level Pre-Expression of Interest (Pre-EOI ) Meeting at PDIL headquarters in Noida for the Establishment of Green Urea Plants across India. The meeting was chaired by Dr. K.K. Pathak — Joint Secretary, Department of Fertilizers, who also serves as Chairman and Managing Director of PDIL.
The turnout alone tells you how seriously the industry is taking this. Representatives from NTPC, Solar Energy Corporation of India (SECI), major Indian fertilizer companies, technology suppliers of Ammonia-Urea, manufacturers of Electrolyzers, Green Hydrogen and Green Ammonia producers — all attended, both online and offline. The massive participation is a clear signal that this initiative is moving from policy to reality.
📋 Quick Snapshot — What Was Announced
| Detail | Information |
|---|---|
| Event | Pre-Expression of Interest ( Pre-EOI ) Meeting — Green Urea Plants in India |
| Chaired By | Dr. K.K. Pathak — Joint Secretary, DoF & CMD, PDIL |
| Venue | PDIL Headquarters, Noida |
| Date | June 26, 2026 |
| Mission Framework | National Green Hydrogen Mission (NGHM) — Mode 2A |
| Green Ammonia Procurement Target | 7.24 Lakh MT per annum |
| Auction Mechanism | Transparent, competitive e-Reverse Auction managed by SECI |
| Agreement Duration | 10-Year Binding Agreement (GAPA/GASA) |
| Pilot Plant Reference | 150 TPD Green Urea Pilot Plant — Pudimadaka, Andhra Pradesh (by NETRA — R&D wing of NTPC) |
| MNRE Outlay | ₹19,744 crore — National Green Hydrogen Mission |
🌿 What Is Green Urea — And Why Does It Matter?
To understand why this meeting matters, you first need to understand what Green Urea actually is — and why it is different from what India currently produces.
Conventional urea is made through a two-step process — first producing ammonia from natural gas or coal (called Grey Ammonia), then combining it with carbon dioxide to make urea. This process is carbon-intensive and heavily dependent on imported fossil fuels.
Green Urea replaces that fossil-fuel-based ammonia with Green Ammonia — produced by splitting water using electricity from renewable sources like solar and wind, through a process called electrolysis. The result is ammonia made without burning fossil fuels.
| Parameter | Grey/Conventional Urea | Green Urea |
|---|---|---|
| Ammonia Source | Natural Gas / Coal (imported) | Renewable Electricity + Water |
| Carbon Emissions | High — CO₂ intensive process | Near Zero — carbon neutral |
| CO₂ Requirement | From fossil fuel combustion | Still needs external CO₂ source — from captured industrial CO₂ |
| Import Dependence | High — fossil fuels imported | Low — uses domestic renewable energy |
| Current Cost | Lower | Higher — needs subsidy support currently |
| Long-term Outlook | Exposed to global fossil fuel price volatility | Price stable — renewable energy based |
🏛️ Three Policy Pillars — How India Plans to Make Green Urea Work
The Pre-EOI meeting laid out a clear, structured policy roadmap with three key pillars. This is not vague planning — these are operational mechanisms with named institutions and defined responsibilities:
1️⃣ Coordinated Government Support Across Ministries
The roadmap outlines clear pathways for financial allocations from multiple ministries to make green production economically viable:
| Ministry / Department | Role | Outlay |
|---|---|---|
| Ministry of New & Renewable Energy (MNRE) | Accelerate critical green energy infrastructure and strengthen India's clean energy ecosystem | ₹19,744 crore |
| Department of Fertilizers (DoF) | Create institutional and market-parity framework to seamlessly integrate Green Ammonia into the national fertilizer manufacturing chain | Subsidy bridge mechanism |
2️⃣ Differential Subsidy Mechanism — Shielding Manufacturers
Green Ammonia currently costs more to produce than conventional Grey Ammonia — making Green Urea uncompetitive without support. To address this, a robust Offtaker-Side Differential Subsidy Mechanism was outlined:
| Element | How It Works |
|---|---|
| ⚠️ The Challenge | Green Ammonia costs more than Grey Ammonia — making Green Urea uncompetitive without support |
| ✅ The Solution | SECI acts as an intermediary — purchasing Green Ammonia from producers and supplying 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) |
| 🌉 The Bridge | Department of Fertilizers (DoF) covers the price difference — ensuring factories receive green feedstock at full cost parity with conventional fossil-based options |
3️⃣ Producer-Side Incentives with Tapering Support
To encourage private sector participation, a direct financial incentive scheme under NGHM (Green Ammonia Mode 2A) was detailed. The 7.24 Lakh MT/annum procurement target will be allocated through transparent, competitive e-Reverse Auction managed by SECI. Support is provided across clear project stages:
| Project Stage | Support Type |
|---|---|
| 🏗️ 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 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
The discussions at the meeting were not just theoretical. They were grounded in a real working facility — the 150 TPD Green Urea Pilot Plant at Pudimadaka, Andhra Pradesh, developed by NETRA — the R&D wing of NTPC.
This facility is significant because it 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. It serves as the benchmark and technical reference point for all future Green Urea plants being planned across India.
| Pilot Plant Detail | Information |
|---|---|
| Location | Pudimadaka, Andhra Pradesh |
| Capacity | 150 TPD (Tonnes Per Day) Green Urea |
| Developed By | NETRA — R&D wing of NTPC |
| Technology Used | CCUS (Carbon Capture and Utilization Systems) + Water Electrolysis |
| CO₂ Source | Carbonated fly ash, food-grade materials, synthetic fuels |
| Role | Technical benchmark for all future commercial Green Urea plants across India |
🌐 India's Strategic Roadmap for Green Urea Production — The Bigger Picture
India's Net Zero target by 2070 and the National Green Hydrogen Mission present a unique opportunity to transform domestic urea production. Here is the scale of what India is working toward:
| Strategic Point | Detail |
|---|---|
| India's Annual Urea Import | ~1 Crore MT per year — heavily import dependent |
| CO₂ Need for World-Scale Urea Plant | A 12.7 Lakh MT annual capacity plant needs nearly 10 Lakh MT of CO₂ annually |
| CO₂ Source Proposed | Captured CO₂ from thermal power, cement, and steel plants — sustainable industrial feedstock |
| Existing Plant Age Problem | Many existing urea plants are over 30 years old — significant new capacity will be required |
| Net Zero Target | 2070 — Green Hydrogen Mission is a key pathway |
| NGHM Green Hydrogen Target | Produce at least 5 Million MT of Green Hydrogen per annum by 2030 |
| Who Can Lead | Organizations like NTPC — with expertise in power generation, renewable energy, Green Hydrogen, and fertilizer investments through HURL — are best placed |
✅ What This Means — For Traders, Agri Exporters and the Fertilizer Sector
India imports around 1 crore MT of urea every year. Every rupee spent on imported urea is foreign exchange going out of the country. Building domestic Green Urea capacity is not just about climate — it is about energy security, import bill reduction, and long-term price stability for farmers.
- 🌾 Agri exporters — Lower and more stable urea input costs over time will improve the cost competitiveness of Indian agricultural produce in global markets
- 🏭 Fertilizer companies — The 7.24 Lakh MT Green Ammonia procurement with 10-year GAPA/GASA agreements gives long-term supply certainty for companies planning to transition
- ⚡ Electrolyzer and Green Hydrogen manufacturers — The EOI process now open is a direct business opportunity — massive demand is being created
- 🏗️ Renewable energy investors — NTPC and similar organizations with integrated expertise across power, green hydrogen, and fertilizer are identified as ideal project developers
- 🌍 Import-export trade — If India succeeds in reducing urea imports through Green Urea production, it directly improves the trade balance and reduces exposure to global fossil fuel price swings
- 🔬 Technology suppliers — The Pudimadaka pilot plant's CCUS and electrolysis integration opens new procurement opportunities for carbon capture technology providers
Green Urea won't replace imports overnight. But today's Pre-EOI meeting at PDIL shows the government is moving past policy papers and into actual project planning — auctions, agreements, and named institutions, not just targets on paper.
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💬 Join WhatsApp Group 📝 Follow on QuoraDisclaimer: All data in this post is sourced from the official PIB press release dated 26 June 2026 (Release ID: 2278167), Ministry of Chemicals and Fertilizers — Department of Fertilizers, Government of India. This post is for informational and awareness purposes only.