Page 60 - Policy Economic Report - March 2026

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

This expansion of ALMM represents an important step towards Atmanirbhar Bharat and the country’s
commitment to achieving 500 GW of non-fossil fuel capacity by 2030.

Exchange of Green Ammonia Agreements Under NGHM Mark Key Step for India’s Energy Security:
Union Minister Pralhad Joshi

Union Minister of New and Renewable Energy, Pralhad Joshi, said that the exchange of Green Ammonia
Purchase Agreements and Green Ammonia Supply Agreements marks an important step in
strengthening India’s energy security, especially at a time when the world is facing uncertainty. He was
addressing the Exchange of Green Ammonia Agreements for the fertiliser sector under the National
Green Hydrogen Mission at Atal Akshay Urja Bhawan in presence of Union Minister of Health & Family
Welfare and Chemicals & Fertilisers Shri J P Nadda.

Union Minister Joshi highlighted that under the leadership of the Prime Minister Shri Narendra Modi,
India has demonstrated that economic growth and climate action can move together at scale and at
speed. He noted that India is today one of the fastest growing renewable energy markets in the world
and is on track to achieve 500 GW of non-fossil fuel capacity by 2030.

The exchange of agreements between industry, SECI and fertilizer companies, with a tenure of 10 years,
marks a key milestone towards operationalising these projects, the Minister said. The long-term
agreements provide demand certainty, enable financial closure and support large-scale investments in
green ammonia production.

The Minister emphasised that energy security is closely linked to national security and highlighted the
importance of reducing import dependence in critical sectors. He stated that replacing imported grey
ammonia with green ammonia will strengthen domestic capability and build resilient supply chains. 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 further noted that the next phase of India’s energy transition will focus on hard-to-abate
sectors such as fertilizers, refineries, steel and transport, where green hydrogen and its derivatives will
play a critical role. He added that green ammonia will not only serve as a clean feedstock but also help
build a new industrial ecosystem, generate jobs and attract investments.

Union Minister Shri J. P. Nadda, described the initiative as a historic and forward-looking step towards
building a robust green ammonia ecosystem in the country. He said that the agreements mark the
operationalisation of green ammonia in India and reflect the Government’s strong commitment to
promoting sustainable and affordable solutions in the fertilizer sector.

Highlighting India’s development model, he noted that the country has demonstrated that growth and
sustainability can go hand in hand under the leadership of Prime Minister Modi. He emphasised that the
initiative will reduce dependence on imports, improve affordability, and strengthen self-reliance in the
fertilizer sector, ensuring that farmers have nothing to worry about. He further stated that with the
allocation of about 7.24 lakh tonnes per annum of green ammonia, the country is moving decisively

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