Government to Launch Coal Gasification Urea Policy

The scheme will address logistical and economic challenges by linking coal supply arrangements with project financing and long term offtake agreements. Environmental safeguards will be integrated into the approval process to ensure emissions management and compliance with existing pollution standards. The policy framework will also examine the role of carbon capture technologies where feasible and the potential for co producing power or chemicals to improve project economics.

The initiative is aimed at reducing reliance on imported natural gas based urea plants and stabilising domestic fertiliser availability, especially during peak sowing seasons. The ministry intends to provide a clear tariff and incentive regime to improve bankability of projects and to reduce gestation risk for developers. Coordination with state governments will be sought for land, water and infrastructure support.

Industry associations and potential investors are to study the draft and submit project proposals under the new guidelines. Public sector fertiliser producers are positioned to play a role in early adoption to demonstrate feasibility and scale technology deployment. The government will monitor progress and allow periodic adjustments to the policy based on implementation feedback.

Stakeholders will be given a defined timeframe for clearances to reduce lead times and a single window mechanism will be proposed to expedite approvals. The policy is intended to complement broader energy and agricultural objectives nationally.