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Sign in to searchNational Urea Investment Policy (NIPU) 2026 Approved
Context
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the National Urea Investment Policy (NIPU) 2026 to strengthen India's self-reliance in the fertilizer sector. The new policy replaces the New Investment Policy (NIP) 2012, whose investment window closed in October 2019. It aims to boost domestic urea production, reduce import dependence, and ensure long-term fertilizer security.
Background
India is one of the world's largest consumers of urea, with an annual demand of nearly 40 million tonnes, while domestic production is around 30 million tonnes. The remaining requirement is met through imports, exposing the country to global price volatility and supply disruptions. The NIP-2012 helped revive domestic urea manufacturing, but changing economic conditions and the need for greater investment necessitated a revised policy.
Salient Points
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National Urea Investment Policy 2026 aims to add 10 million tonnes of urea capacity through natural gas plants, reducing India's import dependence and strengthening food security.
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