Solar Energy Corporation of India Limited (SECI) has invited bids for the production and supply of 54,000 tonnes of green ammonia annually to Madhya Bharat Agro Products Limited-III's fertiliser plant in Dhule, Maharashtra.
Issued on 24 September 2026, the tender comes under Mode-2A, Tranche-II of the Strategic Interventions for Green Hydrogen Transition (SIGHT) Scheme, part of the National Green Hydrogen Mission. The producer will be selected through competitive bidding followed by an electronic reverse auction.
SECI will enter into a 10-year Green Ammonia Purchase Agreement (GAPA) with the selected producer. It will then supply the ammonia to the fertiliser company through a corresponding sale agreement. The purchase agreement will run from the scheduled commencement of supply.
Bidders must quote a fixed price per kilogram, excluding taxes, for the full agreement period. This price must cover storage and transportation to the Dhule plant. The selected producer will be responsible for developing the production facilities, obtaining approvals and delivering the ammonia.
Incentives tied to production and supply
The tender provides incentives for the first three years of eligible production and supply:
Year 1: ₹8.82 per kg of green ammonia
Year 2: ₹7.06 per kg
Year 3: ₹5.30 per kg
Payments will be calculated using the lower of the allocated annual capacity and actual production and supply, subject to the tender's conditions. This links financial support to delivered output.
Financing and implementation milestones
The project must achieve financial closure within 12 months of the GAPA's effective date. This includes evidence of financing arrangements covering the full project funding requirement.
Supply from the full project capacity is scheduled to commence within 36 months of the agreement's effective date. The tender also specifies penalties for delayed commissioning and commencement of supply.
What it means for the sector
For India's green hydrogen sector, the tender connects new production capacity with a defined requirement at a fertiliser plant. A named buyer and a longer purchase period give developers a clearer basis for planning investment. The initial incentives provide support during the early years of operation.
The commercial challenge will be to deliver at a price that remains viable over the contract period. Developers will need to account for renewable electricity costs, plant operations, storage and transport when preparing their bids. With incentives ending after three years, the economics of supply over the remaining agreement period will also be an important consideration.
