The Department of Fertilizers conducted a high-level Pre-Expression of Interest Meeting for the Establishment of Green Urea Plants in India, chaired by Dr. K.K. Pathak, Joint Secretary of the Department of Fertilizers and CMD of PDIL. The meeting saw participation from major stakeholders across private and public sectors including NTPC, Solar Energy Corporation of India, technology suppliers, fertilizer companies, and electrolyzer manufacturers.
Key policy highlights include coordinated government support with the Ministry of New & Renewable Energy allocating ₹19,744 crore for green energy infrastructure while the Department of Fertilizers creates the institutional framework for integrating Green Ammonia into fertilizer manufacturing. A differential pricing mechanism is being explored where SECI would purchase Green Ammonia from producers and supply 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 transport costs.
Producer-side incentives include a direct financial scheme under NGHM (Green Ammonia Mode 2A) with a total procurement target of 7.24 Lakh MT per annum of Green Ammonia through competitive e-Reverse Auction managed by SECI. Support will be provided across development and operational stages with 10-year binding agreements (GAPA/GASA) providing long-term certainty.
Technical foundation is demonstrated through NTPC's 150 TPD Green Urea pilot plant at Pudimadaka, Andhra Pradesh, which integrates Carbon Capture and Utilization systems with water electrolysis. The initiative supports India's Net Zero target by 2070 and addresses the annual urea import of approximately 1 crore MT while utilizing captured CO₂ from thermal power, cement, and steel plants. A world-scale urea plant of 12.7 lakh MT annual capacity requires nearly 10 lakh MT of CO₂ annually, positioning the fertilizer sector as a major consumer of captured CO₂.