- The Government of India approved the National Investment Policy Urea-2026 (NIPU-2026) during a Union Cabinet meeting held on July 15, 2026.
- The policy aims to expand urea production capacity in the country, reduce dependence on imports, and strengthen self-reliance by fostering new investments in the fertilizer sector.
- This policy is a revised and expanded version of the Urea Investment Policy of 2012, the tenure of which had expired in October 2019.
- Under the new policy, 8–9 natural gas-based urea plants will be established in the country.
- The objective is to develop an additional urea production capacity of approximately 10 million metric tonnes per annum through these plants, thereby helping to meet domestic demand and reducing the need for imports.
- To attract investors, the policy provides for a guaranteed Return on Equity (RoE) ranging from 12% to 16%.
- Additionally, the cost structure has been made more transparent, and a mechanism has been introduced to convert fixed costs into Indian Rupees after four years to mitigate foreign exchange rate risks.
- These provisions are expected to create a more stable, transparent, and investment-friendly environment for investors in both the private and public sectors.
Tags:
National
