The Fertiliser Ministry on Friday announced a roadmap for domestic green urea production, indicating strong interest from prospective players that could make production a reality soon, according to a report by BusinessLine. As part of the plan, a 150 tonnes per day (TPD) green urea pilot plant will be established at Pudimadaka, Andhra Pradesh, developed by NETRA, the R&D arm of NTPC. The facility integrates Carbon Capture and Utilisation (CCUS) systems with water electrolysis.
ICAR Trials and Pilot Plant
The Indian Council of Agricultural Research (ICAR) has been conducting trials since the last Rabi season on the effectiveness of green ammonia on select crops such as paddy, oilseeds, and sugarcane, the ministry said. The pilot plant at Pudimadaka will serve as a technical reference point.
The Department of Fertilizers (DoF) held a high-level pre-Expression of Interest (EOI) meeting chaired by K K Pathak, joint secretary and also Chairman and Managing Director of PDIL. The EOI was floated by PDIL to gauge market interest and technical readiness. Participants included NTPC, Solar Energy Corporation of India (SECI), technology suppliers for ammonia-urea, major fertilizer companies, and manufacturers of electrolyzers, green hydrogen, and green ammonia. The ministry noted that the massive turnout—both online and offline—is a clear indicator of intent to bring the initiative to reality.
"The massive turnout — online and offline — from prospective players across the entire value chain is a clear indicator of the keen intent to bring this initiative to reality in the near future," the ministry said.
Financial Framework and Proposed Mechanism
Discussions highlighted financial allocations from multiple ministries. Ministry of New & Renewable Energy (MNRE) has been tasked to allocate ₹19,744 crore to accelerate critical green energy infrastructure. DoF is creating an institutional and market-parity framework to integrate green ammonia into the national fertilizer chain, though its financial contours are yet to be worked out.
Green ammonia currently costs more than conventional grey ammonia, making green urea uncompetitive without subsidy. Under the proposed arrangement, SECI will act as an intermediary—procuring green ammonia from producers and supplying it to domestic fertilizer companies at grey ammonia-equivalent prices. Prices will be benchmarked to a two-week average of Platts and Argus indices, adjusted for customs duties and local logistics. DoF will cover the residual price difference.
On the supply side, financial incentives under the National Green Hydrogen Mission (NGHM)—Green Ammonia Mode 2A—have been proposed. A procurement target of 7.24 lakh tonnes (lt) of green ammonia per year is envisaged, allocated via competitive e-reverse auction managed by SECI. Support would be available across development and operational stages, secured for 10 years through a binding definitive agreement, the ministry said.
| Element | Details |
|---|---|
| Pilot plant capacity | 150 TPD green urea at Pudimadaka, Andhra Pradesh |
| Developer | NETRA (R&D arm of NTPC) with CCUS + water electrolysis |
| MNRE allocation | ₹19,744 crore for green energy infrastructure |
| Green ammonia procurement target | 7.24 lt per year via e-reverse auction by SECI |
| Price benchmarking | Two-week average of Platts and Argus indices customs duties, local logistics |
| Subsidy mechanism | DoF covers price difference between green and grey ammonia |
Supply and Demand Dynamics
India imported 100 lt of urea in 2025-26 and continues overseas purchases to meet domestic demand, even as the government pushes to reduce import dependence on chemical fertilizers. Green urea production requires carbon dioxide as a synthesis feedstock, making captured CO₂ from thermal power, cement, and steel plants an essential input. A world-scale urea plant of 12.7 lt annual capacity would require nearly 10 lt of CO₂ per year.
The ministry noted that integrated projects—combining renewable energy, green hydrogen, carbon capture, and ammonia synthesis—could position the fertiliser sector as one of India's largest consumers of captured industrial carbon, supporting the country's net-zero goal for 2070.
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