MBAPL Signs 10-Year Green Ammonia Deal with SECI, Eyeing ₹6,900 Crore Forex Savings
Madhya Bharat Agro Products Limited signed a 10-year Green Ammonia Purchase Agreement with SECI. The deal ensures 1,30,000 MT/annum supply at grey ammonia price parity. It is expected to save ₹6,900 crore in foreign exchange over 10 years by substituting imported ammonia, supporting India's green hydrogen mission.
The long-term agreement for a critical raw material, the substantial foreign exchange savings, and the alignment with national green energy missions indicate a high impact on MBAPL's operations, cost structure, and strategic positioning.
The agreement with SECI for Green Ammonia is a strategic positive step for the company, securing raw material, reducing import dependence, and leading to significant foreign exchange savings. This aligns with national green initiatives.
Madhya Bharat Agro Products Limited (MBAPL) has entered into a significant Green Ammonia Purchase Agreement (GASA) with Solar Energy Corporation of India Limited (SECI). This domestic agreement, effective for a period of 10 years, will ensure a supply of 1,30,000 MT per annum of Green Ammonia at a price parity with grey ammonia. The supply is expected to commence three years following the execution of the agreement.
Green Ammonia, a climate-friendly alternative to traditional grey ammonia, will be utilized by MBAPL for the production of low-carbon or zero-carbon nitrogenous fertilizers. The company anticipates substantial benefits and a smooth transition from grey to green ammonia. This strategic move is expected to save approximately ₹6,900 crore in foreign exchange over the agreement's tenure by substituting imported grey ammonia for non-urea based fertilizer units.
The GASA, executed under the Government of India’s National Green Hydrogen Mission, aims to support the fertilizer industry's shift towards low-carbon feedstock and reduce reliance on imported ammonia. It provides demand visibility, which is crucial for fostering domestic green ammonia capacity and infrastructure development, thereby promoting its increased use in fertilizer production. The agreement does not involve any upfront payment and is considered an arm's length transaction.
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Madhya Bharat Agro Products Limited filed this with the NSE as a statutory disclosure, categorised under strategic partnerships. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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See the model portfoliosA plain-language summary of a public exchange filing by Madhya Bharat Agro Products Limited. Read the original for the full detail.