The Department of Fertilizers convened a high-level Pre-Expression of Interest (Pre-EOI) meeting at PDIL headquarters in Noida on 26 June 2025 to accelerate India's push for green urea plants, with the government detailing a coordinated financial and institutional framework to make green ammonia commercially viable. The meeting followed an Invitation for Expression of Interest issued earlier in the week for establishing green urea manufacturing capacity across India.

Who Attended and Why It Matters

The meeting drew wide participation from both public and private stakeholders, including NTPC, the Solar Energy Corporation of India (SECI), technology suppliers for ammonia-urea, major Indian fertilizer companies, and manufacturers of electrolysers, green hydrogen, and green ammonia. According to the official statement from the Ministry of Chemicals and Fertilizers, the strong turnout — both online and offline — signals robust industry appetite for what the ministry described as a shift toward sustainable agriculture, carbon neutrality, and technological self-reliance.

Financial Support and Cost-Parity Mechanism

A key challenge acknowledged at the meeting is that green ammonia currently costs significantly more to produce than conventional grey ammonia, making green urea uncompetitive without government intervention. To bridge this gap, the government outlined ₹19,744 crore in support from the Ministry of New and Renewable Energy to accelerate critical green energy infrastructure.

SECI has already tendered for purchasing green ammonia from producers and will supply it to domestic fertilizer companies at standard market-linked grey ammonia prices — effectively absorbing the cost differential. A direct financial incentive scheme under the NGHM (Green Ammonia Mode 2A) programme was also detailed to encourage private sector participation.

Procurement Targets and Auction Framework

A total procurement target of 7.24 lakh metric tonne per annum of green ammonia has been set, to be allocated through a transparent, competitive e-Reverse Auction managed by SECI. The Department of Fertilizers will establish the institutional and market-parity framework to integrate green ammonia seamlessly into the national fertilizer manufacturing chain.

The Pudimadaka Pilot as a Blueprint

Technical discussions centred on the 150 TPD Green Urea pilot plant at Pudimadaka, Andhra Pradesh — developed by NETRA, the R&D wing of NTPC — as a benchmark for scaling. The facility demonstrated integration of advanced Carbon Capture and Utilization (CCUS) systems with water electrolysis, and also supports the use of carbonated fly ash, food-grade materials, and synthetic fuels.

What Comes Next

With the Pre-EOI stage complete, formal expressions of interest from prospective players across the green ammonia value chain are expected to follow. The framework being built — combining SECI's procurement role, NGHM incentives, and the PDIL-led institutional process — represents the government's attempt to de-risk early movers and build a domestic green fertilizer supply chain from the ground up.