India's Strategic Roadmap for Green Urea Production
The Department of Fertilizers has launched a comprehensive initiative to establish green urea plants across India, marking a significant shift toward sustainable agriculture and carbon neutrality. This effort supports India's Net Zero target by 2070 and aligns with the National Green Hydrogen Mission, presenting an opportunity to transform domestic urea production while reducing dependency on imports of approximately 1 crore MT annually.
Policy Framework and Financial Support
The government has outlined coordinated support across ministries, with the Ministry of New & Renewable Energy (MNRE) committing ₹19,744 crore to accelerate critical green energy infrastructure. The Department of Fertilizers is tasked with creating the institutional and market-parity framework to integrate Green Ammonia into the national fertilizer manufacturing chain. A robust differential subsidy mechanism will address cost challenges, as Green Ammonia currently costs more to produce than conventional Grey Ammonia.
Procurement and Incentive Structure
Under the National Green Hydrogen Mission (NGHM) Mode 2A, a total procurement target of 7.24 lakh MT per annum of Green Ammonia will be allocated through transparent, competitive e-Reverse auctions managed by the Solar Energy Corporation of India (SECI). SECI will act 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 Department of Fertilizers will cover the price difference to ensure full cost parity with conventional fossil-based options.
Support will be provided across clear project stages: development stage for new greenfield projects or those under construction, operational stage with cash incentives from commercial supply date, and long-term certainty through 10-year binding definitive agreements (GAPA/GASA) giving developers market confidence.
Technical Implementation and Infrastructure
The technical foundation is demonstrated by the 150 TPD (tons per day) Green Urea pilot plant at Pudimadaka, Andhra Pradesh, developed by NETRA (NTPC's R&D wing). This facility integrates advanced Carbon Capture and Utilization (CCUS) systems with water electrolysis, supporting the use of carbonated fly ash, food-grade materials, and synthetic fuels. A world-scale urea plant of 12.7 lakh MT annual capacity requires nearly 10 lakh MT of CO₂ annually, which can be sourced from captured CO₂ from thermal power, cement, and steel plants.
Strategic Significance and Participation
The initiative attracted significant stakeholder participation from both private and public sectors, including NTPC, Solar Energy Corporation of India, technology suppliers of ammonia-urea, major Indian fertilizer companies, and manufacturers of electrolyzers, green hydrogen, and green ammonia. Integrated projects combining renewable energy, Green Hydrogen, carbon capture, green ammonia, and urea production can strengthen fertilizer and energy security while supporting climate goals. Organizations like NTPC, with expertise in power generation, renewable energy, Green Hydrogen, and fertilizer investments through HURL, are positioned to lead such initiatives.