EoI issued to set up green urea plants
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UPSC has already asked about this. Read the story with these questions in mind.
The Department of Fertilizers invited Expressions of Interest for green urea plants in India and held a pre-EoI meeting at PDIL, Noida, the Ministry said on 26 June 2026. Discussions covered SECI’s green ammonia price-parity mechanism, a 7.24 lakh MT a year green ammonia procurement target, and NTPC’s 150 TPD green urea pilot at Pudimadaka.
- Release
- 26 Jun 2026, Department of Fertilizers
- Step
- Invitation for EoI for green urea plants; pre-EoI meeting at PDIL, Noida
- Participants
- NTPC, SECI, technology suppliers, fertilizer firms, electrolyser and green hydrogen makers
- MNRE support cited
- ₹19,744 crore
- Green ammonia target
- 7.24 lakh MT/annum via SECI e-reverse auction; incentives for 10 years
- Pilot
- 150 TPD green urea plant at Pudimadaka, Andhra Pradesh, by NETRA (NTPC)
The green urea plants EoI: what happened?
Urea is made from ammonia, and ammonia is usually made using fossil fuels, so urea carries a carbon cost. Green urea uses hydrogen from water and renewable power, plus captured carbon dioxide. It is costlier today, so the Government is building price support to make it work.
- The EoI seeks players to set up green urea plants.
- SECI has tendered to buy green ammonia and supply it to fertilizer firms at market-linked grey ammonia prices.
- A similar mechanism may be explored for green urea.
- Producer incentives under NGHM (Green Ammonia Mode 2A) are secured for 10 years through GAPA/GASA agreements.
Why does green urea still need CO₂?
- Green hydrogen can replace fossil fuels in making ammonia, but urea synthesis also needs carbon dioxide.
- Captured CO₂ from thermal power, cement and steel plants can be the feedstock.
- A urea plant of 12.7 lakh MT a year needs nearly 10 lakh MT of CO₂ a year.
Why is new capacity needed?
- India imports around 1 crore MT of urea a year.
- Many existing plants are over 30 years old.
What are the key numbers?
| Item | Figure |
|---|---|
| MNRE allocation cited | ₹19,744 crore |
| Green ammonia procurement target | 7.24 lakh MT per annum |
| Incentive certainty | 10 years |
| Pudimadaka pilot | 150 TPD |
| World-scale urea plant | 12.7 lakh MT per year |
| CO₂ needed for that plant | nearly 10 lakh MT per year |
| Urea imports | around 1 crore MT per year |
How would a green urea plant work?
- Renewable power runs electrolysers
- Water is split to make green hydrogen
- Green hydrogen is used to make green ammonia
- Captured CO₂ from industry is added
- Ammonia and CO₂ are combined into green urea
Why does the green urea plants EoI matter?
| Angle | What to note |
|---|---|
| Agriculture | Cleaner fertilizer supply for farmers. |
| Energy security | New domestic capacity can cut urea imports. |
| Climate | Supports Net Zero by 2070 and uses captured CO₂. |
| Industry | Large assured demand for green hydrogen and carbon capture. |
What are the challenges in the green urea plants EoI?
- Green ammonia costs more than grey ammonia today; green urea is not competitive without support.
- A carbon capture framework is still evolving.
- The EoI is an early step; no plant has been awarded yet.
What should be done next on the green urea plants EoI?
- Assess EoI responses and design a price mechanism for green urea.
- Scale up from the Pudimadaka pilot.
- Link urea plants with carbon capture at power, cement and steel units.
What can Prelims ask on the green urea plants EoI?
- DoF invited EoI for green urea plants (June 2026); pre-EoI meeting at PDIL, Noida.
- Green ammonia: 7.24 lakh MT/annum via SECI; NGHM Mode 2A; 10-year support.
- Pudimadaka, Andhra Pradesh: 150 TPD green urea pilot by NETRA (NTPC).
- Urea needs CO₂ as well as ammonia.
How to write about the green urea plants EoI in Mains
Practice question (10 marks, 150 words): Green urea can link fertilizer security with climate goals, but cost is the main barrier. Discuss the policy support India is building.
- Intro: EoI for green urea plants.
- Why: imports, old plants, net zero.
- Support: SECI price parity, NGHM incentives.
- Barriers: cost, CO₂ supply.
- Conclusion: integrated projects.
How to use this in Mains
- As per PIB (2026-06-26): the Department of Fertilizers issued an Expression of Interest for green urea plants and held a pre-EoI meeting at PDIL, Noida.
- Cuts import dependence and emissions; links the National Green Hydrogen Mission with fertilisers.
Quotable data pointThe Department of Fertilizers issued an Expression of Interest for green urea plants and held a pre-EoI meeting at PDIL, Noida.
PIB: Fertilizers: green urea EoI, 26 Jun 2026
Exam angle
Prelims: green ammonia and urea.
Practice MCQs
Original practice questions (not PYQs).
The 150 TPD green urea pilot plant at Pudimadaka was developed by
Answer (b) & explanation
PIB (Fertilizers), 26 Jun 2026.
Why does green urea still need an external carbon dioxide source?
Answer (b) & explanation
PIB (Fertilizers), 26 Jun 2026.
Questions students ask about this
What is green urea?
Urea made using green hydrogen-based ammonia and a sustainable CO₂ source, such as carbon captured from industry.
How does SECI help green ammonia buyers?
It buys green ammonia from producers and supplies it to fertilizer companies at market-linked grey ammonia prices.
Where is India's green urea pilot plant?
At Pudimadaka, Andhra Pradesh: a 150 TPD plant developed by NETRA, NTPC's R&D wing.
How much urea does India import?
Around 1 crore MT a year, as per the release.
Keep studying
Go deeper
Official source: PIB: Fertilizers: green urea EoI, 26 Jun 2026
facts from cited sources only; faculty review pending