New Delhi: The Solar Energy Corporation of India (SECI), under the Ministry of New and Renewable Energy (MNRE), issued a landmark tender last year for the supply of 7,24,000 tonnes of green ammonia annually to 13 fertiliser plants across the country. The move aims to accelerate decarbonisation of India’s fertiliser sector and promote domestic green hydrogen production under the government’s Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme – Mode 2A, Tranche I, said the MNRE in a statement on Monday.
The tender was issued on June 7, 2024, and the last date for bid submissions is June 26, 2025. SECI will aggregate demand and enter into 10-year offtake agreements with successful bidders, providing long-term market certainty to green ammonia producers.
To make green ammonia financially viable, the government has committed production-linked incentives (PLIs) of Rs 8.82/kg, Rs 7.06/kg, and Rs 5.30/kg for the first three years of supply respectively, totalling Rs 1,533.4 crore in support. In addition, a Payment Security Mechanism (PSM) will be put in place to protect suppliers from payment delays by fertiliser companies — a move aimed at reducing risk and unlocking finance.
SECI will conduct an e-reverse auction to select suppliers, ensuring price discovery remains competitive and transparent. The initiative addresses the long-standing “chicken-and-egg” challenge of the green hydrogen economy — the absence of stable demand that deters investment in supply, and vice versa, said the MNRE.
India currently consumes between 17 to 19 million tonnes of ammonia annually, with over half of its hydrogen demand used in the fertiliser industry. Most of this hydrogen is produced using imported natural gas, exposing the country to global fuel price shocks and trade deficits. The adoption of green ammonia — produced via electrolysers powered by renewable energy — is expected to significantly reduce import dependence and associated emissions.
SECI’s green ammonia tender is expected to spur investment not only in hydrogen production but also in electrolyser manufacturing and the broader clean energy supply chain. The government sees this initiative as a cornerstone in achieving its 2070 net-zero target and supporting the broader "Viksit Bharat" vision of a self-reliant, sustainable India.
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