Relevance: GS III (Environment, Science & Technology, Economy) | Source: PIB / India Energy Week

Context: Why is it in the News?

At the recent India Energy Week (IEW) 2026, the government clearly stated that India is shifting from just “energy security” to total “energy independence.” The biggest hero in this new plan is Green Ammonia, which will help India attract billions in foreign investments and clean up our heavy industries.

1. What is Green Ammonia?

Ammonia is a very important chemical mostly used to make agricultural fertilizers (like urea).

• The Dirty Way (Grey Ammonia): Normally, ammonia is made using natural gas. This process releases a huge amount of toxic carbon dioxide (CO2) into the air.
• The Clean Way (Green Ammonia): Here, scientists take nitrogen from the air and mix it with Green Hydrogen (hydrogen made purely using solar or wind power). Because no fossil fuels are burned, this process has zero carbon pollution!

2. The Need: Why does India want this?

• Self-Reliance (Atmanirbharta): India imports a lot of expensive natural gas from other countries to make fertilizers. Producing green ammonia locally saves billions of dollars and protects us from sudden global price hikes.
• Cleaning Up Industries: It will help highly polluting sectors—like farming (fertilizers) and sea transport (fuel for cargo ships)—become 100% green and eco-friendly.
• Cheaper Clean Fuel: Through smart government planning, the cost of making green ammonia in India has recently dropped to around ₹50-₹65 per kg. This makes it almost as cheap as the dirty “grey” ammonia.

3. Relevant Provisions & Government Support

To push this technology, the government has set up strong rules and support systems:

• The SIGHT Programme: Under the National Green Hydrogen Mission, the government gives direct financial rewards (subsidies) to companies that manufacture green hydrogen and green ammonia in India.
• SECI (Solar Energy Corporation of India): This is the main government body that organizes massive auctions. They invite companies to bid and supply green ammonia at the lowest possible prices.

4. The Issues and Challenges

• The Subsidy Habit: Right now, green ammonia is cheap mainly because the government is giving heavy subsidies under the SIGHT programme. In the future, the industry must learn to survive on its own without free government money.
• Confusing Rules: Companies need clear, fixed rules regarding how they will connect their solar plants to the national electricity grid across different states.
• Bank Loans: Since this is a very new technology, private banks are still scared to give massive loans to these projects. The government needs to create safety nets for lenders.

UPSC Value Box

With reference to India’s push towards ‘Green Ammonia’, consider the following statements:

1. Green Ammonia is produced by combining nitrogen with hydrogen that is generated exclusively from renewable energy sources like solar or wind.
2. The SIGHT programme is a major financial initiative launched specifically to support the domestic manufacturing of Green Hydrogen and its derivatives.
3. The Solar Energy Corporation of India (SECI) is the nodal agency responsible for conducting auctions for green ammonia procurement.

Which of the statements given above is/are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Correct Answer: (d)