NTPC Green Energy Limited (NGEL), the renewable energy arm of NTPC, has signed a memorandum of understanding (MoU) with Assago Industries to supply green ammonia, carbon dioxide, and renewable energy power for a large-scale green urea manufacturing project. The agreement marks a significant step toward integrating green hydrogen and renewable energy solutions into India’s fertilizer value chain.

Securing Inputs for 1,000 TPD Green Urea Production

Under the MoU, NGEL will provide:

*Green ammonia

*Carbon dioxide

*Renewable energy power

*Other essential utilities

These inputs will support Assago’s planned 1,000 tons per day (TPD) green urea plant, designed to produce low-carbon fertilizers using sustainable feedstocks. By ensuring reliable access to clean energy and raw materials, the partnership aims to reduce the carbon footprint of urea production while maintaining operational efficiency.

Project to Come Up at Pudimadaka Green Hydrogen Hub

Importantly, the facility will be located within NGEL’s upcoming Green Hydrogen Hub at Pudimadaka, near Visakhapatnam, Andhra Pradesh. The hub is being developed as a dedicated ecosystem for green hydrogen, ammonia, and downstream chemical manufacturing. By co-locating energy generation and production infrastructure, the project is expected to lower logistics costs, improve integration, and enhance sustainability outcomes.

Driving Sustainable Fertilizer Manufacturing

Traditionally, urea manufacturing relies heavily on fossil-fuel-based inputs. However, the shift to green ammonia and renewable energy enables a cleaner, low-emission production process.

Consequently, the collaboration supports:

*Reduced greenhouse gas emissions

*Cleaner agricultural inputs

*Greater energy independence

*Alignment with India’s decarbonisation goals

The initiative also reflects growing momentum in the green chemicals and sustainable fertilizers market, where industries are actively seeking low-carbon alternatives.

Strengthening India’s Green Energy Ecosystem

Through this collaboration, the companies aim to accelerate India’s transition toward renewable energy-led industrial growth, while promoting environmentally responsible agricultural practices. As reported by projectstoday.com, overall, the MoU reinforces NTPC Green Energy’s role in building large-scale green hydrogen and ammonia projects and positions Assago to tap into emerging opportunities in sustainable fertilizer production.

The government has earmarked ₹600 crore in the 2026–27 budget to support the creation of three dedicated chemical parks, marking the first instance of direct budgetary funding for such infrastructure. Finance minister Nirmala Sitharaman said the scheme will help states strengthen domestic chemical manufacturing, reduce import dependency, and build globally competitive production clusters.

Challenge Route and Plug-and-Play Model

To accelerate implementation, the government will adopt a challenge-based selection process, allowing states to compete for approvals. At the same time, the parks will follow a cluster-based, plug-and-play model, enabling companies to quickly set up operations with ready infrastructure. “To enhance domestic chemical production and reduce import dependency, we will launch a scheme to support states in establishing three dedicated chemical parks,” Sitharaman said. This approach aims to reduce project delays while attracting fresh investments into the sector.

Boosting Domestic Manufacturing Capacity

The announcement comes amid rising domestic demand for chemicals across industries such as pharmaceuticals, agrochemicals, petrochemicals, and specialty materials. By creating dedicated industrial zones, the government intends to improve economies of scale, lower logistics costs, and enhance supply chain efficiency. Importantly, the parks are expected to promote innovation, local production, and import substitution, strengthening India’s self-reliance in critical chemical inputs.

Building on Existing Industrial Cluster Policies

The move builds on earlier initiatives aimed at developing chemical manufacturing hubs. Minister of State for Chemicals and Fertilisers Anupriya Patel noted that the government has already rolled out two major programmes to promote chemical industrial parks:

Petroleum, Chemical and Petrochemical Investment Regions (PCPIRs)

Notified in 2007, the PCPIR policy focuses on attracting large-scale investments through integrated, cluster-based regions with shared infrastructure and support services. Three PCPIRs were established:

Visakhapatnam, Andhra Pradesh

Dahej, Gujarat

Paradip, Odisha

Plastic Parks Scheme

Launched in 2010–11, this scheme promotes need-based plastic parks with common facilities and utilities. So far, 10 plastic parks have been approved across multiple states, with several already operational. Furthermore, all three PCPIRs align with major industrial corridors, enhancing connectivity and trade access. The Dahej PCPIR connects to the Delhi–Mumbai Industrial Corridor, while Visakhapatnam and Paradip link to the East Coast Economic Corridor.

Strengthening India’s Chemical Ecosystem

With fresh funding and a focused implementation strategy, the proposed chemical parks are expected to accelerate capacity creation, attract private investment, and strengthen India’s position as a global chemicals manufacturing hub. As reported by business-standard.com, as the sector continues to grow, dedicated infrastructure could play a pivotal role in supporting exports, improving competitiveness, and meeting the country’s long-term industrial ambitions.

In a decisive push toward industrial decarbonisation, the budget has earmarked ₹20,000 crore over the next five years to expand Carbon Capture, Utilisation and Storage (CCUS) infrastructure across India. The move aims to help Indian industries stay environmentally sustainable while remaining competitive in global export markets. Importantly, it also shields high-emission sectors from potential penalties such as the European Union’s proposed Carbon Border Adjustment Mechanism (CBAM), often referred to as a carbon border tax.

Roadmap Targets Hard-to-Abate Sectors

Building on the CCUS roadmap unveiled in December 2025, the government will accelerate deployment of technologies that achieve higher readiness levels in real-world industrial applications.

The initial rollout will focus on five carbon-intensive sectors:

*Power

*Steel

*Cement

*Refineries

*Chemicals

To kick-start implementation, the government has allocated ₹500 crore for FY 2026–27 under the ministry of power specifically for CCUS deployment.

Balancing Growth with Climate Goals

The strategy aligns closely with India’s commitment to achieve net-zero emissions by 2070. While industries continue to expand to meet growing economic demand, CCUS offers a pathway to reduce emissions without slowing development. In other words, the technology enables companies to cut carbon footprints while sustaining production and exports, striking a balance between climate action and industrial growth.

How CCUS Technology Works

CCUS tackles emissions through two complementary approaches — storage and utilisation.

Storage

First, facilities capture carbon dioxide (CO₂) generated during industrial or energy processes. They then compress, transport, and inject the gas into depleted oil reservoirs or deep geological formations, preventing it from entering the atmosphere.

Utilisation

Alternatively, companies can reuse captured CO₂ as a feedstock for manufacturing. Industries convert the gas into industrial and consumer products, creating value while lowering overall emissions.

Together, these approaches transform CO₂ from a liability into either a safely stored or commercially useful resource.

Boosting Competitiveness in Global Markets

Beyond environmental benefits, CCUS adoption could strengthen India’s export competitiveness. As global markets tighten emission norms, companies with lower carbon footprints will likely gain a pricing and compliance advantage. Consequently, early investment in CCUS infrastructure positions Indian manufacturers to meet international sustainability standards, avoid trade barriers, and attract climate-conscious investors.

A Strategic Step Toward Industrial Decarbonisation

With dedicated funding, sector-specific targets, and a clear policy roadmap, the government is signalling strong intent to mainstream CCUS across heavy industries. As reported by timesofindia.indiatimes.cocm, if implemented effectively, the initiative could become a cornerstone of India’s clean energy transition, enabling the country to decarbonise core industries while safeguarding economic growth.

Stallion India Fluorochemicals Limited (SIFL) signed a long-term strategic partnership with Sharjah Oxygen Company L.L.C.SP (SOC), Dubai, to source liquid helium and enhance its technical capabilities for the Indian market. Under the agreement, Stallion will procure liquid helium from RAS Gases & Oilfields, Qatar, one of the world’s leading helium production hubs. The collaboration ensures consistent access to high-purity helium while strengthening the company’s global sourcing network.

Expanding Presence in High-Value Industrial Gases

With this move, Stallion is accelerating its expansion into high-value and high-purity industrial gases, a segment witnessing strong demand from advanced manufacturing sectors.

Helium remains a critical input across multiple industries, including:

*Semiconductors

*Medical imaging (MRI systems)

*Fiber optics

*Aerospace

*Research laboratories

Advanced electronics manufacturing

By securing long-term supply, Stallion aims to support customers with stable availability, predictable pricing, and reliable delivery, particularly in sectors where supply disruptions can halt operations.

Strategic Collaboration with a Regional Gas Leader

Founded in 1970, Sharjah Oxygen Company has established itself as a key industrial, specialty, and rare gases supplier in the Middle East. The company brings deep expertise in gas filling stations, on-site services, plant installations, and bulk storage solutions. Through this partnership, Stallion gains not only supply access but also technical collaboration, logistics strength, and diversified sourcing options, thereby reducing procurement risks and enhancing operational efficiency.

Strengthening Supply Chain and Customer Reliability

Importantly, the alliance enables Stallion to:

*Diversify global helium sources

*Strengthen logistics capabilities

*Improve sourcing economics

*Ensure consistent product quality

As a result, customers benefit from uninterrupted supply chains and dependable service, which are increasingly crucial for precision-driven industries such as electronics and healthcare.

Supporting Long-Term Growth Strategy

The partnership aligns with Stallion’s broader vision to build an integrated, diversified, and asset-backed platform across fluorochemicals, refrigerants, and specialty gases. As reported by business-standard.com, moreover, the company expects the strengthened portfolio to support its ambitious three-year revenue CAGR target of 30–35%, positioning Stallion as a stronger player in India’s rapidly growing industrial gases market.

The budget’s proposal to establish a dedicated rare earth corridor is already reshaping investor sentiment. Industry experts and venture capital (VC) firms say the initiative sends a powerful long-term signal that India is serious about strengthening its deeptech, clean mobility, and advanced manufacturing ecosystem. While the immediate focus remains on mining and extraction, investors believe the larger ambition is far more strategic — building domestic capabilities across materials science, power electronics, and critical components that underpin next-generation technologies.

Beyond Mining: Building a Complete Value Chain

Instead of limiting efforts to resource extraction, policymakers aim to create an integrated value chain that spans refining, processing, and component manufacturing. This shift is crucial because most of the economic value lies downstream, not at the mining stage. Consequently, venture investors say the corridor could reduce supply chain risks for startups developing electric vehicles (EVs), battery systems, robotics, and advanced hardware solutions. By securing local access to critical materials, India can cut its dependence on imports and improve manufacturing resilience.

If implemented effectively, the policy may also attract global collaborations, encouraging multinational companies to partner with Indian deeptech firms on material development and R&D. Such partnerships could accelerate intellectual property (IP) creation and boost India’s position in high-value technologies.

Processing and Conversion Hold the Real Value

Experts highlight that refining and conversion capacity — not just mining — determine long-term competitiveness. “What China has built over decades is large-scale refining and permanent magnet manufacturing capacity. The real value lies in processing and conversion, not just mining,” said Vasudha Madhavan, Founder of Ostara Advisors. Her view underscores a key industry lesson: without downstream capabilities, raw material advantages deliver limited economic gains.

Rare Earths Power the Next-Gen Economy

Rare earth elements (REEs) comprise a group of 17 critical metals essential for modern technologies. Today, they enable applications across EVs, renewable energy systems, robotics, IoT devices, semiconductors, and advanced electronics. Although India possesses significant reserves, it still lacks large-scale refining and magnet manufacturing infrastructure. As a result, much of the value creation happens outside the country. By developing this missing infrastructure, India can capture greater economic benefits while strengthening domestic supply chains.

Greater Confidence for Venture Capital

From an investment perspective, the corridor could significantly de-risk early-stage funding. Investors say that policy clarity and supply chain stability make it easier to commit long-term capital to hardware-heavy and deeptech startups, which typically require higher upfront investment.

“By formalising a rare earth corridor, India is signalling that it wants to move up the value chain — from extraction to processing to IP creation,” said Manu Iyer, Managing Director at Bluehill VC. “That clarity is what long-term capital looks for when backing hard-tech startups.” He added that the policy opens opportunities to invest in material innovation ventures. Similarly, Alok Chauhan of Axilor Ventures noted that the initiative allows funds to underwrite investments in clean mobility and deeptech with greater confidence. However, he stressed that sustained investment across the ecosystem — including post-processing, refining, and domestic offtake — remains essential.

Global Demand Set to Surge

The timing also aligns with rapidly rising global demand. According to the International Energy Agency (IEA), demand for rare earth elements is expected to grow sevenfold by 2040, driven by the clean energy transition, EV adoption, and advanced electronics manufacturing. Against this backdrop, India’s rare earth corridor could position the country as both a strategic supplier and an innovation hub.

A Strategic Bet on India’s Deeptech Future

Taken together, the policy marks more than a mining initiative. It represents a broader strategy to strengthen India’s technology manufacturing base, attract venture capital, and accelerate deeptech innovation. As reported by msn.com, for investors and startups alike, the message is clear: the government is laying the groundwork for a self-reliant, future-ready ecosystem — and capital is likely to follow.

Global specialty chemicals player Nouryon introduced FinnFix® PB MAX, the cleaning industry’s first carboxymethylcellulose (CMC) with a 100% renewable carbon index score, helping detergent manufacturers significantly lower product carbon footprints without sacrificing performance. With sustainability now a top priority for consumer brands, formulators are under pressure to reduce emissions while maintaining cleaning efficiency. In response, Nouryon is delivering a next-generation, fully biobased solution that supports both environmental and performance goals.

A Fully Renewable, Biodegradable Alternative to Synthetic Ingredients

FinnFix® PB MAX replaces conventional synthetic detergent additives with a 100% biobased and biodegradable CMC that offers equal or better functionality. Unlike traditional ingredients, the new solution enhances sustainability while maintaining the high cleaning standards consumers expect. Moreover, the product improves anti-redeposition performance by preventing removed dirt and soils from reattaching to fabrics during the wash cycle. As a result, garments retain their brightness, cleanliness, and overall appearance for longer.

Renewable Raw Materials Backed by Certified Production

Nouryon manufactures FinnFix® PB MAX using natural wood-based cellulose, combined with ISCC Plus-certified monochloroacetic acid produced at the company’s Delfzijl, Netherlands facility. Consequently, the final CMC is derived entirely from renewable carbon sources, strengthening its environmental credentials and supporting circular economy targets.

Meeting Growing Demand for Low-Carbon Formulations

According to Nouryon, brand owners worldwide are actively seeking solutions that cut emissions while maintaining product effectiveness. “We’re seeing unprecedented demand from brand owners who need to reduce product carbon footprint while maintaining the cleaning performance consumers expect,” said Brad Pearson, Vice President of Nouryon’s Cleaning Goods business line. “As the world’s largest CMC producer with manufacturing heritage dating back to the early 1940s, our application experts provide customers with a clear pathway to meet consumer expectations and evolving regulatory requirements for sustainable formulations,” Pearson added.

Easy Integration for Detergent Manufacturers

Importantly, FinnFix® PB MAX integrates seamlessly into existing powdered laundry detergent formulations, requiring minimal reformulation. This enables manufacturers to adopt the ingredient quickly without disrupting production lines. In addition, Nouryon supports customers through its global network of application laboratories, offering technical assistance and formulation guidance to accelerate product development.

Strengthening Nouryon’s Home and Personal Care Portfolio

As per the press release, within Nouryon’s Consumer and Life Sciences segment, FinnFix® PB MAX expands the company’s Home and Personal Care portfolio, which supplies essential performance ingredients for everyday consumer products. Through continued innovation, the company aims to help detergent brands deliver effective, sustainable, and future-ready formulations.

Vineet Agarwal, Managing Director, Transport Corporation of India Limited (TCI), “The Union Budget 2026–27 sends a strong and reassuring signal on India’s manufacturing-led growth agenda. By maintaining fiscal discipline with a deficit of 4.3% while scaling capital expenditure to ₹12.2 lakh crore, the Government has reinforced confidence in long-term investments, capacity creation, and a stable, predictable policy environment that strengthens ease of doing business.

The Budget’s sharp focus on logistics and industrial infrastructure will be a major enabler of manufacturing scale-up. Dedicated freight corridors, expansion of national waterways, high-speed rail connectivity, investments in ship-repair ecosystems, and a ₹10,000-crore push for container manufacturing will significantly reduce logistics costs and build a robust ecosystem for capital goods and supporting industries. These measures will strengthen MSMEs, crowd in private investment, and generate large-scale employment across manufacturing, logistics, and tourism-linked services. Equally important is the forward-looking emphasis on advanced manufacturing through ISM 2.0, semiconductors, data centres, and AI-led digital platforms. Together, these initiatives lay the foundation for resilient, technology-driven supply chains and position India as a globally competitive hub for manufacturing, trade, tourism, and job creation—aligned with the broader vision of Viksit Bharat”.

Abhimanyu Roy, Executive Director, Avalon Consulting, “The Budget highlighted its intent towards procedural reforms, e.g. simplify licensing, faster input tax credit refunds, etc. This will help the chemicals industry as well. A specific focus on removing inverted duty structures, reducing import duties in certain key raw materials, extending ITC refund scope to capital goods and input services for product and services exporters (e.g. CDMOs) would have helped, but nothing specific has been mentioned in these areas. While mfg.

Competitiveness has been emphasised; one would have liked a focused support for MSMEs. The announcement on the three Chemical Sector Parks is welcome. Hopefully, details will emerge soon. Finally, the INR 20,000 crore allocation for CCUS projects is positive, as a massive thrust is required for the chemicals industry to decarbonise. Similar focus and allocation on Green Hydrogen and CBG should be a priority”.

Ketan Kulkarni, Managing Director and Chief Executive Officer, Allcargo Logistics, “Budget 2026 offers a strategic response to a rapidly changing global trade environment by strengthening India’s logistics and supply chain ecosystem. The focus on multimodal infrastructure including new freight corridors, inland waterways, cargo movement projects and last-mile connectivity for remote regions will be critical in improving efficiency and lowering logistics costs.

The ₹10,000-crore SME Growth Fund, supported by enhanced liquidity through mandatory TReDS adoption, credit-backed invoice discounting and GeM integration, will empower MSMEs to scale, formalise and participate more actively in export-led growth. Incentives for indigenous seaplanes and waterway-based cargo movement further unlock regional and alternative logistics pathways. Together, these measures reinforce India’s ambition to remain deeply integrated with global markets, attract long-term investment and build resilient, job-creating enterprises advancing the vision of a Viksit Bharat”.

Bijal Sanghvi, Managing Director, Axis Solutions Limited, “Budget 2026 sets a decisive direction for India’s manufacturing sector by reinforcing the ambition of Viksit Bharat through technology-led, sustainable growth. The emphasis on advanced manufacturing, digital infrastructure, and green initiatives reflects a clear intent to build globally competitive yet responsible enterprises. Digital transformation, driven by IIoT, enables plants to operate with precision and foresight.

Integrated plant dashboards, supported by real-time data analytics and continuous monitoring, empower leadership with actionable insights; improving productivity, energy efficiency, and operational resilience. Such capabilities are no longer optional; they are fundamental to achieving scale with consistency and compliance. Sustainability, when combined with data-driven decision-making, ensures long-term value creation for industry, society, and the economy. Budget 2026’s focus on innovation, skilling, and smart manufacturing provides industry leaders the confidence to invest in future-ready plants that are intelligent, transparent, and aligned with India’s journey toward inclusive and enduring industrial progress”.

Vishal Sharma, Godrej Industries Limited (Chemicals), “Budget 2026-27 ramps up the government’s push to make Indian manufacturing stand out, and for the chemicals sector, it’s a strong step forward. The reforms around extra funding for R&D is big for chemical sector where progress depends on constant innovation, especially in advanced materials, specialty chemicals, and fresh sustainable solutions.

While the budget lays out a clear strategy, the industry would have welcomed stronger fiscal incentives for capital-heavy green tech, quicker clarity on the new labour codes, and more focused support for exports. Moves like these would help chemical companies attract more investment and compete faster on the global stage. Still, the ‘Reform Express’ narrative inspires confidence and provides a solid platform for sustainable, technology-driven manufacturing growth in India.”

Abhishek Shrivastava, MD, IMEA, The Lubrizol Corporation, “The Union Budget 2026–27 sends a strong and timely signal for India’s industrial growth journey. The unmissable focus on domestic manufacturing is reflected through continued support for production ecosystems, infrastructure expansion, and skill development, which will significantly help elevate Indian manufacturing to global standards.

For the chemical industry, the government’s commitment to rationalising and lowering customs duties on chemical raw materials is particularly important, as it will help reduce costs, strengthen supply chains, and enable Indian manufacturers to compete more equitably at the global level.

Additionally, the focus on logistics and innovation-led growth further reinforces confidence in long-term investments across sectors. The Budget’s balanced approach, addressing structural bottlenecks while promoting higher value-added manufacturing supports sustainable growth and resilience. The recent clarity on the GST intermediary ruling also brings much-needed certainty for cross- border services, aiding ease of doing business. Overall, this is a forward-looking budget that aligns industry aspirations with the larger goal of sustainable nation building. Timely and effective execution of the announced measures will be key to unlocking their full impact on businesses and the economy.”

Anurag Choudhary, CMD and CEO, Himadri Speciality Chemical Limited, “We applaud the Union Budget 2026-27 for its visionary focus on fortifying India’s strategic manufacturing independence. The establishment of dedicated Rare Earth Corridors across Odisha, Kerala, Andhra Pradesh, and Tamil Nadu is a watershed moment; it will create the integrated infrastructure needed to transform raw minerals into high-value components for the EV and defense sectors.

Furthermore, the exemption of Basic Customs Duty (BCD) on critical inputs-specifically sodium antimonate for solar glass and materials for lithium-ion cell manufacturing-is a decisive move. These measures will significantly lower capital costs for domestic battery production, making ‘Make in India’ energy storage solutions globally competitive. The Budget moves India from intent to execution—laying the foundation for a self-reliant, innovation-led, and sustainable green-manufacturing future, a pretext move towards our goal of Atmanirbhar Bharat”.

Dhiren Jatakia, Head – Accounts and Finance, Covestro India, “We welcome the government’s focus on strengthening domestic manufacturing, particularly in the chemicals sector. Initiatives like chemical parks and cluster-based infrastructure will help scale production, strengthen supply chains, and create opportunities for local businesses. Support for industrial and logistics infrastructure, along with simplified compliance, will enable manufacturers to grow and innovate. We also value the emphasis on sustainability, energy transition, and carbon capture technologies, which aligns with Covestro India’s commitment to responsible growth and advanced materials for a greener future. These measures lay a strong foundation for innovation, reduced import dependence, and a competitive, resilient chemical industry in India”

Sunil Kumar, Country President, Henkel Adhesives Technologies India, “We welcome Union Budget 2026 and its focus on the three Kartavyas of accelerating growth, building national capacity, and ensuring inclusive development. The continued emphasis on infrastructure is reflected in the ₹12.2 lakh crore public capital expenditure. Investments in transport corridors, urban infrastructure, capital goods, electronics manufacturing, and semiconductors signal a clear intent to build deeper, more resilient manufacturing capabilities. For the adhesives sector, this supports demand across infrastructure-led and technology-intensive applications.

These range from infrastructure and transportation to electronics and semiconductor manufacturing, where performance, durability, and reliability are critical. Henkel’s strategic focus on innovation, digitalisation, and sustainability is well reflected in the Budget’s emphasis on sustainability, digital manufacturing, advanced electronics, and Semiconductor Mission 2.0. The ₹20,000 crore allocation for carbon capture and utilisation further signals that sustainability is being treated as an economic enabler rather than a compliance requirement. Taken together, the Budget underscores a responsible growth framework anchored in inclusivity, capability building and long-term competitiveness.”

Dr Arunabha Ghosh, CEO, CEEW, “Budget 2026 emerges as a beacon shaping the next generation of Indian capabilities across energy, technology, cities, and agriculture. It offers cues not only for where India is headed, but for how institutions, markets, and innovators must now evolve. The announcement of Rare Earth Corridors and a Semiconductor Mission 2.0 moves India decisively from policy intent to state-level execution, addressing the long-standing missing link in the critical minerals supply chain—namely, processing. This shift must be reinforced through offtake guarantees, sustained R&D, and strategic partnerships.

CEEW’s research shows that cities are already bearing the brunt of climate change through extreme heat, urban flooding, and water scarcity. Given the enormous untapped potential of Tier 2 and Tier 3 cities to become the next hubs of economic growth, the creation of City Economic Regions is a timely step towards shaping cities that are productive, liveable, and sustainable. Incentives for municipal bonds can further unlock private capital.

Equally important is the prioritisation of carbon capture, utilisation and storage across power, steel, cement, refineries, and chemicals—sectors that will define India’s net-zero pathway. Bharat Vistaar and the multilingual AI-enabled agri stack can make digital public infrastructure work for farmers at scale, turning data into higher incomes, lower risk, and greater climate resilience.

Finally, in addition to the Budget, we are deeply encouraged by the significant strengthening of India’s disaster risk financing, including the 16th Finance Commission’s recommendation of a INR 2.04 lakh crore Disaster Risk Management Fund for 2026–31—a 28 per cent increase over the previous cycle—anchored in a scientific, climate-informed Disaster Risk Index covering 10 disasters, including heatwaves, lightning, and floods, and shaped in part by a study undertaken by CEEW, to better protect lives and development gains. Together, these measures position India to build a competitive, climate resilient, low-carbon, and inclusive economy”.

S Sankarasubramanian, Chairman, The Fertiliser Association of India and Managing Director and CEO, Coromandel International Ltd, “This Budget brings together productivity, resilience, and affordability in a way that reflects the evolving needs of Indian agriculture. The focus on district-level outcomes, better seeds, diversified cropping, and multilingual digital advisory platforms has the potential to meaningfully improve on-farm decision-making and input efficiency, provided execution remains closely aligned with ground realities.

The fertiliser allocations underline a steady commitment to domestic capability. Support of ₹91,000 crore for indigenous urea and ₹34,000 crore for domestically produced P&K fertilisers, alongside imported fertiliser support of ₹32,000 crore for urea and ₹20,000 crore for P&K, reinforces supply security while maintaining farmer access to affordable nutrients. The emphasis on customs duty rationalisation and addressing inverted GST structures is particularly important, as it helps streamline costs, improve cash flows, and create a more predictable operating environment. Overall, the approach strengthens alignment between agricultural priorities and industrial sustainability, supporting farmers today while building a more resilient and efficient fertiliser ecosystem for the future.”

Samir Somaiya, Chairman and Managing Director, Godavari Biorefineries Ltd,

“We welcome the emphasis on Carbon Capture and Storage and BioCNG. These reflect the continuing importance of moving towards a lower carbon footprint and moving towards a net zero as per the Prime Minister’s commitment of India achieving net zero status by 2070”.

Amitt Nenwani, Managing Director, Shivtek Spechemi Industries Ltd, “The Union Budget 2026 has provided a definitive blueprint for India’s transition from a chemical consumer to a chemical powerhouse. The Finance Minister’s announcement of three dedicated chemical parks is a masterstroke in de-risking global supply chains and fostering a ‘plug-and-play’ ecosystem for specialty chemicals. At Shivtek Spechemi Industries Ltd, we have proactively aligned our growth with this vision of  self-reliance. Our ₹650 crore expansion plan, which includes our upcoming Chlorinated Polyethylene (CPE) facility, the first of its kind in India, is a direct response to the nation’s massive import dependence on China.

By localizing production of critical raw materials like CPE, we are not just building a plant; we are taking a step closer towards creating an innovative ecosystem that allows India to become a leader in specialty chemicals. The government’s focus on ISM 2.0 and rare-earth corridors further underscores the need for a robust domestic specialty chemical supply chain. I can humbly state that ‘Aatmanirbharta’ is now meeting industry action. With these new chemical corridors, we expect a significant reduction in logistics costs and a massive surge in R&D-led manufacturing, positioning India as the primary ‘Plus One’ for the global specialty chemicals market”.

India will build rare earth corridors across mineral-rich states to boost domestic magnet production for high-technology sectors. Under the Union Budget 2026-27, the government announced support for these corridors in Odisha, Kerala, Andhra Pradesh and Tamil Nadu. These corridors will integrate mining, processing, research and manufacturing of rare earth materials.

Enhancing Technology and Self-Reliance

The initiatives aim to reduce India’s heavy reliance on imported permanent magnets, which are crucial for phones, electric vehicles (EVs), defence and space equipment. By enhancing local production, India will secure supply chains that have long depended on foreign sources.  As reported by the Economic Times, industry leaders say dedicated rare earth corridors will accelerate new technology development for magnet manufacturing and attract investment in processing facilities across states.

Customs Duty Exemptions to Boost Processing

The government also announced customs duty exemptions on capital goods required for processing critical minerals. This policy covers machinery used in lithium-ion cells, battery storage systems and related technologies. These exemptions aim to lower upfront costs and encourage private players to expand operations within India.

Strategic Scheme for Magnet Manufacturing

Earlier, the union cabinet approved a scheme to promote manufacturing of sintered rare earth permanent magnets with a financial outlay of ₹7,280 crore, targeting the establishment of 6,000 metric tons per annum of integrated manufacturing capacity. This scheme will build facilities that convert rare earth oxides into finished, high-performance magnets.

Reducing Import Dependence and Supporting Net Zero Goals

India currently imports most of its rare earth magnets. With these measures, the government expects to reduce dependence on imports, create jobs, and strengthen supply chains vital for EVs, renewable energy, aviation, electronics and defence sectors. The expanded domestic capacity aligns with India’s broader goal of achieving Net Zero emissions by 2070.

Indian Gas Exchange Limited (IGX), India’s authorized natural gas trading exchange, has entered into a strategic partnership with Hindustan Petroleum Corporation Limited (HPCL), a Maharatna public sector enterprise, to enhance access to regasification infrastructure and strengthen market-based participation in India’s natural gas sector.

MoU Signed at India Energy Week 2026

The two organizations signed a Memorandum of Understanding (MoU) on the sidelines of India Energy Week (IEW) 2026 held in Goa. Mr. Anuj Mehrotra, Executive Director – Natural Gas, HPCL, and Mr. Rajesh Kumar Mediratta, Managing Director & CEO, IGX, formalized the agreement. Through this collaboration, both parties aim to support the evolution of a transparent, competitive, and efficient gas market in the country.

Digital Platform to Enable Transparent Capacity Booking

Under the MoU, IGX will develop a digital, market-driven platform that enables transparent and efficient booking of regasification services at HPCL’s LNG terminal in Chhara, Gujarat. Meanwhile, HPCL will make its storage and regasification capacities available on the platform in pre-defined quantities and timeframes. As per the press release, this initiative is designed to improve infrastructure utilization, expand market participation, and promote greater liquidity within India’s natural gas ecosystem.

HPCL Reaffirms Commitment to Market-Oriented Access

Anuj Mehrotra emphasized that the partnership reflects HPCL’s commitment to providing transparent, efficient, and market-oriented access to critical gas infrastructure. He further noted that by leveraging digital platforms and market mechanisms, HPCL aims to enhance utilization of the Chhara LNG terminal and accelerate the adoption of natural gas across key consumption sectors.

IGX Highlights Role in Strengthening Gas Market Architecture

Rajesh K. Mediratta stated that the MoU represents a significant milestone in strengthening India’s gas market architecture. He explained that market-based access to regasification capacity will improve operational efficiency, broaden participation, and strengthen price discovery, thereby accelerating the growth of natural gas in India’s energy mix.

Hindustan Petroleum Corporation Limited (HPCL) has partnered with IIT
Kanpur–incubated deep-tech startup Maraal Aerospace by executing a Share Subscription and Shareholders Agreement (SSSHA) at India Energy Week (IEW) 2026 in Goa on 29 January 2026. The collaboration marks a significant step toward strengthening India’s clean-energy and aerospace innovation ecosystem.

HPCL Invests ₹2 Crore Under ‘HP Udgam’ Initiative

Under HPCL’s Startup Support Initiative, HP Udgam, the company is investing ₹2 crore in Maraal Aerospace. Through this investment, HPCL aims to accelerate product development, testing, and system validation. As a result, the partnership will enable faster product realization and scalable deployment of next-generation clean-energy UAV platforms.

India’s First Solar-Powered Long-Endurance Drone

Maraal Aerospace is developing India’s first solar-powered long-endurance unmanned aerial vehicle (UAV) powered by clean-energy propulsion. The platform integrates high-efficiency aerodynamics with solar-assisted electric propulsion. Consequently, the drone delivers up to 12 hours of endurance, a 150 km one-way operational range, and a service ceiling of up to 6 km above mean sea level, while maintaining low operating costs and reduced logistical dependence. As per the press release, this innovation represents a major advancement in sustainable aerospace technologies for both defence and civilian use.

Enabling Critical Defence and Civilian Applications

The UAV platform will significantly enhance India’s defence preparedness and critical civilian operations. Specifically, it will support border and maritime surveillance, intelligence, surveillance and reconnaissance (ISR) missions, infrastructure and asset inspections, and disaster management operations.

Future Roadmap: Extended Endurance and High-Altitude Platforms

Looking ahead, Maraal Aerospace plans to develop a solar-plus-hydrogen hybrid variant targeting 24-hour endurance. In addition, the company envisions a future High-Altitude Pseudo Satellite (HAPS) platform capable of conducting missions exceeding 90 days, further expanding India’s strategic aerial capabilities.