Cupboard approves Nationwide Funding Coverage for Urea 2026: What adjustments below NIPU-2026
2 min learnJul 15, 2026 05:08 PM IST
The Union Cupboard Wednesday accredited the Nationwide Funding Coverage for Urea-2026 (NIPU-2026), a brand new framework to encourage funding in gas-based urea manufacturing items and improve home manufacturing.
The federal government, in a press launch, stated the coverage goals to realize the purpose of self-sufficiency below the Atmanirbhar Bharat initiative. The brand new coverage introduces a number of adjustments over the sooner New Funding Coverage (NIP)-2012., whose funding window resulted in October 2019.
Key options of the coverage
The brand new coverage separates mounted and variable prices within the pricing framework. It introduces a return on fairness (RoE) band with a minimal of 12% and a most of 16%. It additionally addresses overseas alternate threat by changing mounted prices into rupees after 4 years primarily based on the prevailing alternate charge.
The federal government stated these adjustments will enhance transparency and save greater than Rs 250 crore for each plant arrange below NIPU-2026 in contrast with tasks accredited below NIP-2012.
Give attention to home manufacturing
The Division of Fertilizers will cowl new gas-based urea manufacturing items below NIPU-2026. The federal government stated the coverage will assist new investments and assist improve home urea manufacturing to slim the hole between demand and provide.
India presently has 33 operational urea manufacturing items with a reassessed put in capability of 269.42 lakh metric tonnes (LMT). The nation continues to import urea to fulfill home demand.
Why the brand new coverage
The Division of Fertilizers launched the New Funding Coverage in 2012 to advertise funding in revamp, growth, revival, brownfield and greenfield urea tasks.
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Beneath NIP-2012, firms arrange six new urea crops, together with 4 by way of joint ventures of public sector firms and two by non-public companies. After the coverage’s funding interval resulted in 2019, the Division of Fertilizers obtained contemporary proposals to determine new urea items, prompting the federal government to herald NIPU-2026, the discharge reads.
