Page 48 - Policy & Economic Report - June 2025

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

The challenge welcomes a wide range of startups in green tech, IoT, AI, blockchain, construction, energy
hardware, fintech, and waste management.

Incentives and Support

The selected innovators will compete for a total prize pool of ?2.3 crore, including ?1 crore for 1st Prize,
?50 lakh for 2nd Prize, ?30 lakh for 3rd Prize, and 10 Consolation Prizes of ?5 lakh each. Winners will also
gain incubation support, pilot implementation opportunities, and mentorship from domain experts and
investors, facilitated by MNRE and NISE.

SECI's Landmark Green Ammonia tender set to decarbonize India's fertilizer sector

The Solar Energy Corporation of India Limited (SECI), a 'Navratna' Central Public Sector Undertaking under
the aegis of Ministry of New and Renewable Energy (MNRE), has issued a landmark tender for offtake of
Green Ammonia, aimed at decarbonizing India’s fertilizer sector. With final bid submissions due shortly,
the tender calls for the production and supply of 724,000 tonnes of green ammonia annually across 13
fertilizer plants, under the Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme - Mode
2A, Tranche I.

SECI will anchor demand aggregation and sign long-term offtake agreements, providing producers with
market certainty over a 10-year contract period. The tender was issued on 07th June 2024 and the last
date for bid submission is 26th June 2025.

Ammonia, an essential component in urea and other nitrogen-based fertilizers, is currently produced
using fossil fuels, leading to high greenhouse gas emissions. SECI’s tender leverages renewable energy to
produce green hydrogen and ammonia, promoting low-emission, domestic fertilizer production.

To ensure financial viability, the government is offering financial incentives under the National Green
Hydrogen Mission, with Production Linked Incentives (PLI) of ?8.82/kg, ?7.06/kg, and ?5.30/kg for the first
three years respectively- amounting to a total support of ?1,533.4 crore. A robust Payment Security
Mechanism (PSM) is also committed by GOI to de-risk potential payment delays from fertilizer companies.
This gives suppliers the assurance of steady cash flows, encouraging greater participation and financing.
The bidding process will follow SECI’s e-reverse auction model, ensuring competitive and transparent
price discovery.

India consumes approximately 17-19 million tonnes of ammonia annually, with more than 50% of its
hydrogen requirement used in fertilizer production. However, most of this is derived from imported
natural gas. SECI’s initiative is expected to drastically cut this dependence, reduce exposure to global gas
price fluctuations, and lower the trade deficit. Producing green hydrogen emits less than 2 kg of CO2 per
kilogram, compared to up to 12 kg CO2 from conventional grey hydrogen.

Domestic green ammonia production is expected to enhance resilience during geopolitical disruptions
and generate new employment opportunities.

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