Union Cabinet approves National Investment Policy for urea 2026
Business
The Union Cabinet just approved the National Investment Policy for Urea-2026 (NIPU-2026), aiming to ramp up local urea production and make India less dependent on imports.
This update replaces the old 2012 policy, whose investment window had ended, and is all about closing the widening gap between how much urea India makes and how much it needs.
Pricing split, ROE 12% to 16%
The policy brings in a smarter pricing system that splits fixed and variable costs, promises a fair return on equity (12% to 16%), and helps companies dodge foreign exchange risks by locking fixed costs in rupees after four years.
Plus, it encourages setting up more gas-based urea plants, so India can rely less on imports.