The Cabinet Committee on Economic Affairs (CCEA) has approved the National Investment Policy for Urea-2026 for Atmanirbhar Bharat (NIPU-2026).
The policy aims to add 10 million tonnes of domestic urea production capacity by setting up 8–9 natural gas-based urea plants.
It replaces the New Investment Policy (NIP)-2012, whose investment window ended in 2019.
The policy assures a Return on Equity (RoE) of 12%–16%, separates fixed and variable subsidy costs, and protects investors from foreign exchange risks.
It aims to reduce urea imports, improve self-sufficiency, and attract public and private investment in the fertiliser sector.
The policy is expected to save over ₹250 crore per plant compared with the New Investment Policy (NIP)-2012.