SECI’s Landmark Move to Decarbonize Fertilizers
The Solar Energy Corporation of India Limited (SECI), a ‘Navratna’ PSU under the Ministry of New and Renewable Energy, has issued a groundbreaking tender for the annual production and supply of 724,000 tonnes of green ammonia across 13 fertilizer plants. This is part of the SIGHT Scheme – Mode 2A, Tranche I.
SECI will facilitate demand aggregation and secure long-term contracts, giving producers the assurance of market stability for 10 years. The tender was released on 7th June 2024, and the final bid submission deadline is 26th June 2025.
Greener Alternatives for a Cleaner Future
Currently, ammonia is produced using fossil fuels, resulting in significant CO₂ emissions. The new initiative will switch production to renewable energy, using green hydrogen, and will significantly cut carbon footprints in fertilizer manufacturing.
To make this viable, the government offers attractive Production Linked Incentives (PLIs): ₹8.82/kg in Year 1, ₹7.06/kg in Year 2, and ₹5.30/kg in Year 3 — totaling ₹1,533.4 crore in support. A Payment Security Mechanism is also in place to reassure suppliers of timely payments.
Reducing Imports and Boosting Domestic Production
India consumes about 17–19 million tonnes of ammonia annually, much of which depends on imported natural gas. This initiative will reduce foreign dependency, shield the economy from gas price shocks, and support job creation in green industries.
The tender also addresses the common “chicken-and-egg” dilemma in green hydrogen adoption — by generating both demand and supply simultaneously. SECI aims to inspire investments in clean hydrogen production, electrolysers, and clean tech innovation.
This move is a significant leap toward India’s 2070 net-zero goal and contributes to the broader “Viksit Bharat” vision of a self-reliant, sustainable India.
Source: PIB
