National Investment Policy for Urea-2026 (NIPU-2026)
Prelims:
Economy, Agriculture
Mains:
GS Paper III – Indian
Economy, Agriculture
Current
relevance:
The
Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime
Minister, has approved the National Investment Policy for Urea-2026 for
Atmanirbhar Bharat (NIPU-2026).
Highlights:
1. National Investment Policy for Urea-2026 (NIPU-2026) is a policy launched by the Department of Fertilizers to
encourage investments in gas-based urea manufacturing plants.
2. Objective:
i.
Increase domestic urea production by encouraging investment in
new gas-based urea manufacturing units.
ii.
Achieve fertilizer self-reliance by reducing import dependence
and strengthening India's fertilizer security.
3. Significance:
i.
It reduces India's
dependence on imported urea, strengthens the external sector, and promotes
investment in the domestic fertilizer industry.
ii.
Ensures a reliable supply
of urea for farmers, thereby improving agricultural productivity and
supporting national food security.
iii.
It advances the vision of
Atmanirbhar Bharat by enhancing self-reliance and strengthening India's long-term
fertilizer security.
4. About Gas-based urea manufacturing units:
i.
The fertilizer plants that
use natural gas as the primary raw material (feedstock) and
energy source to produce urea fertilizer.
ii.
Working Mechanism:
Natural gas is first converted into ammonia through a chemical process.
The ammonia is then combined with carbon dioxide (CO₂) to produce urea, which is widely used
as a nitrogen-based fertilizer.
Source: PIB - https://www.pib.gov.in/PressReleaseDetail.aspx?PRID=2284801®=48&lang=1