India is set to save around $2.5 billion in foreign exchange over the next decade as it operationalises 7.24 lakh tonne per annum of green ammonia supply for the fertiliser sector, marking a shift towards domestic sourcing and reduced import dependence.
The agreements, signed between green ammonia developers, fertiliser companies and the Solar Energy Corporation of India (SECI), have discovered prices ranging from ₹49.75 to ₹64.74 per kg, significantly lower than global benchmarks of around ₹110 per kg.
Union minister for new and renewable energy Pralhad Joshi said the agreements come at a time of global uncertainty and strengthen India’s energy security. “Today’s agreements is important for strengthening India’s energy security, especially at a time when the world is facing uncertainty,” he said.
“The initiative is expected to result in foreign exchange savings of approximately $2.5 billion over a period of 10 years through substitution of imported grey ammonia in non-urea based fertilizer units,” the minister added.
The contracts, with a tenure of 10 years, are linked to 13 fertiliser manufacturing units across multiple states and are expected to provide long-term demand certainty for developers, enabling investment and scale-up.
What did Union minister for chemicals and fertilizers say?
Union minister for chemicals and fertilizers Jagat Prakash Nadda described the development as a key milestone. He said the agreements mark “the operationalisation of green ammonia in India” and reflect a shift towards “promoting sustainable and affordable solutions in the fertilizer sector.”
India currently depends on imported grey ammonia for non-urea fertiliser production, exposing the sector to global price volatility. The replacement of imported ammonia with domestically produced green ammonia is expected to strengthen supply resilience.
Joshi emphasised the strategic importance of the move. “Energy security is closely linked to national security,” he said, adding that the initiative will help build resilient supply chains in critical sectors.
The agreements are part of the ₹19,744 crore National Green Hydrogen Mission, which targets 5 million metric tonnes of green hydrogen production annually by 2030.
The bidding process under the SIGHT programme ensured competitive price discovery, with the lowest bid of ₹49.75 per kg emerging as one of the most competitive globally.
Joshi said the next phase of India’s energy transition will focus on hard-to-abate sectors. “Green ammonia will not only serve as a clean feedstock but also help build a new industrial ecosystem, generate jobs and attract investments,” he said.
Nadda added that the initiative will “reduce dependence on imports, improve affordability, and strengthen self-reliance in the fertilizer sector.”