NEW DELHI – In a landmark move toward energy self-reliance, the Department of Fertilizers (DoF) achieved a major milestone on March 31, 2026, by exchanging Green Ammonia Purchase and Supply Agreements (GAPA/GASA) between fertilizer units and green ammonia producers.
The exchange took place in the presence of Union Minister for Chemicals & Fertilizers J.P. Nadda and Union Minister for New and Renewable Energy Pralhad Joshi, marking a decisive step in operationalizing the National Green Hydrogen Mission (NGHM).
Key Highlights of the Initiative
Under the Strategic Interventions for Green Hydrogen Transition (SIGHT) program, the government has secured long-term stability for the agricultural sector:
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Competitive Pricing: Bidding discovered prices between ₹49.75 and ₹64.74 per kg, significantly lower than the international benchmark of approximately ₹110 per kg.
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Massive Scale: A total capacity of 7,24,000 tonnes per annum (TPA) has been allocated, linked to 13 fertilizer units across India.
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Economic Impact: The transition is expected to save approximately $2.5 billion in foreign exchange over the next 10 years by reducing dependence on imported grey ammonia.
Major Beneficiaries & Projects
Top fertilizer players have secured 10-year supply agreements to stabilize domestic production:
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IFFCO: Secured 2,00,000 MT per year for its Kandla and Paradeep units via ACME Cleantech.
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Coromandel International (CIL): Allocated 1,35,000 MT for Kakinada and Vishakhapatnam.
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Paradeep Phosphates (PPL): Secured supplies for units in Odisha, Goa, and Mangalore.
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Other Participants: Include Indorama India and various units under the Ostwal Group.
Strengthening National Security
Minister J.P. Nadda emphasized that integrating green ammonia is not just about reducing carbon emissions, but about shielding Indian farmers from the volatility of global ammonia markets caused by geopolitical tensions.
By fixing supply prices for a decade, the government aims to ensure consistent production of Phosphatic and Potassic (P&K) fertilizers, fostering a “low-carbon, future-ready” agricultural ecosystem. This initiative supports India’s broader goal of producing 5 million metric tonnes of green hydrogen annually by 2030.
