Equal Footing for Coal-Based Urea Projects: A Push for Energy Independence
New Era Cleantech Solution appeals to the Indian government to grant parity for coal-based urea projects with gas-based ones, advocating for fiscal incentives, to ensure project viability. The initiative underscores India's strategic shift to leverage domestic coal reserves, reducing dependency on imported natural gas for urea production.
- Country:
- India
A Maharashtra-based firm, New Era Cleantech Solution, has addressed the government, urging it to bring coal-based urea projects on par with gas-based ones. The company emphasizes the need for offtake assurance mechanisms and a focus on coal-gasification routes amid India's move to diversify urea production feedstock.
Highlighting the higher capital costs associated with coal-based plants due to GST and customs duties, New Era Cleantech Solution requests fiscal incentives from the government. This support aims to boost project viability and encourage private-sector participation in the sector.
The firm plans to establish a coal gasification-based urea plant in Maharashtra, aiming to reduce reliance on imported LNG, which currently supports India's vast urea demand. The initiative is seen as critical for stabilizing supply, reducing geopolitical risks, and bolstering agricultural resilience.
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