The forthcoming budget may have some good news for India’s green ammonia industry, with the FM tuning into the possibility of extending viability gap funding to accelerate production and enhance the global competitiveness of the sector
Finance Minister Nirmala Sitharaman is evaluating the possibility of extending viability gap funding for the green ammonia industry by an additional two years. Several relevant ministries have jointly submitted an advocacy for a VGF scheme designed that would kick up green ammonia production by 2 million tonnes by 2025-26.
The ministries are New and Renewable Energy, Chemicals and Fertilisers, Ports, Shipping and Waterways, and Petroleum and Natural Gas.
In their letter the ministries have requested a Rs 10,000-crores support for the VGF initiative. The letter underscores the crucial role of such funding in reducing capital costs for green ammonia projects and enhancing the competitiveness of Indian production on the global stage.