Cabinet okays National Investment Policy to add fresh 10 million tons urea capacity
The Indian government has approved the National Investment Policy for Urea (NIPU-2026) to incentivize the construction of 8-9 new gas-based fertilizer plants. The policy aims to increase domestic production by 10 million tons to achieve self-reliance.
Why it matters
Reducing urea import dependence is a strategic economic goal for India to stabilize agricultural input costs and ensure food security.
The government on Wednesday (July 15, 2026) announced a new National Investment Policy for Urea (NIPU-2026) to set up 8-9 new gas-based plants with a production capacity of 10 million tonne to make the country self-reliant in the most widely consumed fertiliser.
The policy, approved in the Union Cabinet meeting, headed by Prime Minister Narendra Modi, will encourage new investments in the urea sector to set up gas-based urea manufacturing units in the country.
The new investment framework is an extension of the 2012 New Investment Policy (NIP) with revisions.
Briefing the media after the meeting, I&B Minister Ashwini Vaishnaw said the urea demand is rising 5% annually and the policy approved today aims to create additional urea capacity of 10 million tonne.
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