New Delhi, April 1: In a significant move towards decarbonization and energy security, the Department of Fertilizers (DoF) of the Government of India has facilitated the exchange of Green Ammonia Purchase Agreements (GAPA) and Green Ammonia Supply Agreements (GASA) between fertilizer companies and green ammonia producers. This initiative marks a key milestone in operationalizing projects under the National Green Hydrogen Mission (NGHM) and advancing India’s clean energy transition, as stated in an official release from the Ministry of Chemicals and Fertilizers on March 31, 2026.
11 Projects Signed to Operationalize Green Hydrogen Mission
The agreements, which encompass 11 projects in the fertilizer sector under the National Green Hydrogen Mission, were exchanged in New Delhi. The event was attended by Union Minister for Chemicals and Fertilizers J.P. Nadda, Union Minister for New and Renewable Energy Pralhad Joshi, and the Minister of State for Power and New and Renewable Energy. Senior officials and industry leaders, including secretaries from the Department of Fertilizers and the Ministry of New and Renewable Energy, along with heads of fertilizer companies and green ammonia firms, were also present.
During the event, Nadda described the initiative as a “historic step” towards sustainable fertilizer production. “The exchange of Green Ammonia Agreements marks a historic step in India’s journey towards sustainable fertilizer production. By integrating green ammonia into our supply chains, we are not only reducing carbon emissions but also ensuring long-term energy security and self-reliance. This initiative reflects the Government’s unwavering commitment to building a cleaner, greener future for our farmers and for the nation,” he stated.
10-Year Contracts to Ensure Stable Ammonia Supply
India currently produces approximately 165–170 lakh metric tonnes (LMT) of phosphatic and potassic fertilizers (P&K), including DAP and NPK variants, but remains heavily reliant on imported ammonia. The Ministry highlighted that ongoing geopolitical developments have disrupted the global ammonia market, causing volatility in both availability and prices, which affects the stability of fertilizer production in India. To tackle this issue, fertilizer companies have entered into long-term agreements for green ammonia supply at fixed prices for a period of 10 years, ensuring stability in availability and pricing.
“This strategic move is expected to ensure a stable and reliable supply of ammonia, thereby supporting consistent domestic production of P&K fertilizers and helping maintain price stability in the Indian market,” the Ministry added.
The adoption of green ammonia is anticipated to yield multiple benefits. “It will help conserve foreign exchange by reducing import dependence, promote self-reliance in the fertilizer sector, and create new employment opportunities. Furthermore, it is likely to encourage investments in the development of green ammonia production capacity within the country. A stable supply environment will also attract new players to the fertilizers sector, leading to the establishment of additional manufacturing units in the future,” the Ministry stated.
According to the Ministry of Chemicals and Fertilizers, this transition towards green ammonia represents a significant step towards strengthening India’s fertilizer security, enhancing sustainability, and building long-term resilience in the sector.
Push to Reduce Import Dependence and Save Forex
Under the Strategic Interventions for Green Hydrogen Transition (SIGHT) Programme, the Solar Energy Corporation of India (SECI) conducted competitive bidding, discovering prices ranging from Rs 49.75 to Rs 64.74 per kg—significantly lower than global benchmarks of about Rs 110 per kg. A total green ammonia supply capacity of 7.24 lakh tonnes per annum has been allocated to 13 fertilizer units nationwide.
The agreements are expected to generate foreign exchange savings of approximately $2.5 billion over a decade by replacing imported grey ammonia. They also aim to reduce the carbon footprint of the fertilizer industry and facilitate a transition towards sustainable inputs.
The National Green Hydrogen Mission, with an outlay of Rs 19,744 crore, targets the production of at least 5 million metric tonnes of green hydrogen annually by 2030. The initiative seeks to position India as a global hub for green hydrogen and its derivatives while reducing reliance on fossil-based imports.
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