India Unveils National Investment Policy for Urea Production
On July 15, 2026, the Indian government announced the National Investment Policy for Urea (NIPU-2026), aiming to establish 8-9 new gas-based urea plants with a total capacity of 10 million tonnes. The policy, approved by the Union Cabinet, seeks to reduce India's reliance on urea imports, which currently stand at around 10 million tonnes annually. Domestic production is approximately 30 million tonnes, while the demand is 40 million tonnes. Key changes from the previous policy include clearer cost structures and a return on equity band. The government estimates savings of over ₹250 crore per plant compared to the earlier framework. This initiative follows the establishment of six new urea plants in the last decade and aims to address rising urea demand driven by changing agricultural practices.
Published 3 hours ago • 15 Jul 2026, 06:43 PM IST