Boost For Fertiliser Security
Key Highlights
- Cabinet approves the National Investment Policy for Urea 2026.
- Policy aims to create 10 million tonnes of new domestic urea production capacity.
- Investors will receive assured returns of 12–16% and protection against forex volatility.
- The policy primarily supports natural gas-based plants while allowing future coal gasification integration.
- The initiative aims to reduce import dependence and strengthen India’s fertiliser and energy security.
New Delhi: The Union Cabinet has approved the National Investment Policy for Urea 2026, a new framework aimed at encouraging investments in domestic urea manufacturing and strengthening India’s fertiliser and energy security.
The policy seeks to promote the establishment of new natural gas-based urea manufacturing plants by offering a transparent cost framework, assured returns of 12–16% and protection against foreign exchange volatility.
According to the Gasification Technologies & Research Council of India (GTRC-India), the policy creates a stable investment environment at a time when India’s urea demand continues to grow by nearly 5% annually. The country currently depends on imports for over 27% of its urea requirements, while around 82% of existing plants are more than 25 years old.
The policy also provides a long-term opportunity to gradually integrate coal gasification into India’s fertiliser sector, reducing dependence on imported LNG and improving long-term subsidy efficiency.
The government aims to add 10 million tonnes of fresh domestic urea production capacity, helping India move closer to self-reliance in one of its most widely used fertilisers.
