CCEA Approves National Investment Policy for Urea-2026 to Boost Domestic Production

To achieve self-sufficiency in fertilizer production and reduce reliance on imports, the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, approved the 'National Investment Policy for Urea-2026 for Atmanirbhar Bharat' (NIPU-2026). Formulated by the Department of Fertilizers, the policy provides an updated regulatory and fiscal framework to attract fresh investments into domestic gas-based urea manufacturing. The NIPU-2026 replaces the earlier New Investment Policy of 2012, whose window for new investments expired in October 2019. Key regulatory changes introduced under the 2026 policy include the separation of fixed and variable costs for greater financial transparency, the implementation of a viable Return on Equity (RoE) band ranging between 12% and 16%, and foreign exchange risk mitigation by converting fixed costs into Indian Rupees after four years based on prevailing exchange rates. These structural measures are estimated to yield savings of over ₹250 crore per plant established under the new framework. Currently, India operates 33 urea manufacturing units with a total reassessed capacity of 269.42 lakh metric tonnes per annum (LMTPA). Despite expanded capacity from six plants built under the 2012 policy, a gap remains between indigenous production and growing national demand. By encouraging greenfield and brownfield expansion projects, NIPU-2026 aims to secure domestic supply, protect farmers from global price volatility, and reduce the national import burden.