Cabinet approves National Investment Policy for Urea-2026 (NIPU-2026)

📌 Summary:

• CCEA approved the National Investment Policy for Urea-2026 for Atmanirbhar Bharat (NIPU-2026) to encourage new investment in gas-based urea manufacturing units and achieve self-sufficiency
• Key changes over NIP-2012: separation of fixed and variable costs for greater transparency; a viable Return on Equity (RoE) band with a floor of 12% and ceiling of 16%; mitigation of forex risk by converting fixed cost into INR after four years at prevailing exchange rates
• These measures are estimated to save over Rs 250 crore per plant compared to NIP-2012
• Covers Revamp, Expansion, Revival/Brownfield and Greenfield projects
• Background: under NIP-2012, 6 new urea units were set up (4 via JVCs of nominated PSUs, 2 private); that window expired in October 2019. India currently has 33 operational urea units with reassessed capacity of 269.42 LMT, and imports urea to fill the demand-supply gap

🎯 UPSC Relevance: GS3 — Indian Economy (agriculture inputs, fertiliser subsidy, import substitution, Atmanirbhar Bharat, energy-agriculture linkage)

📝 Prelims Facts:

• NIPU-2026 RoE band: floor 12%, ceiling 16%
• Estimated saving: over Rs 250 crore per plant vs NIP-2012
• India has 33 operational urea units; installed capacity 269.42 LMT (Lakh Metric Tonnes)
• Predecessor NIP-2012 saw 6 new urea units; window expired October 2019

🔑 Key Term: Return on Equity (RoE) band — a policy-fixed range (here 12%–16%) of assured returns to make urea plant investments commercially viable.