India Launches Urea-2026 Policy to Propel Self-Reliance and Cut Imports

The Cabinet has approved the National Investment Policy for Urea-2026 (NIPU-2026) to boost domestic urea production and reduce India's import dependency. This policy facilitates setting up new gas-based urea plants, promising enhanced transparency, cost-efficiency, and self-sufficiency in urea manufacturing under Atmanirbhar Bharat.

The Cabinet Committee on Economic Affairs has given the green light to the National Investment Policy for Urea-2026 (NIPU-2026), a strategic move designed to boost domestic urea manufacturing and decrease reliance on imports. This policy is a crucial component of the Atmanirbhar Bharat initiative, aiming for self-sufficiency in the nation's urea production.

Union Minister Ashwini Vaishnaw announced the establishment of 8-9 new gas-based urea manufacturing plants. Each plant is expected to produce approximately 12.7 lakh metric tonnes, contributing to a total production of around 1 crore metric tonnes. This development promises to fulfill India's entire urea needs domestically, reducing import dependence significantly.

The new policy outlines changes from the previous New Investment Policy of 2012, ensuring greater transparency by separating fixed and variable costs and introducing a return on equity (RoE) band within a 12-16% range. These measures, along with foreign exchange risk mitigation strategies, are anticipated to save over Rs 250 crore per plant compared to the previous policy framework.