Cabinet Approves National Investment Policy for Urea-2026 (NIPU-2026) to Boost Self-Reliance

The Cabinet Committee on Economic Affairs (CCEA) has officially approved the National Investment Policy for Urea-2026 (NIPU-2026), a strategic initiative designed to revitalize India’s fertilizer sector. As India continues to be one of the world's largest consumers of urea, the country has historically relied on significant imports to meet the demands of its vast agricultural sector. NIPU-2026 seeks to reverse this trend by incentivizing the establishment of 8-9 new gas-based urea manufacturing plants, targeting an additional indigenous production capacity of 10 million tonnes. Key features of the policy include a transparent cost structure and a defined Return on Equity (RoE) band of 12-16%. This framework is intended to provide long-term investment certainty for private and public sector players, mitigating the risks associated with volatile global gas prices and foreign exchange fluctuations. By creating a predictable fiscal environment, the government aims to attract capital into the capital-intensive fertilizer industry, which is crucial for maintaining the momentum of the 'Atmanirbhar Bharat' vision in the agricultural domain.