Madhya Bharat Agro Products Limited has informed the Exchange about Arrangements for strategic, technical, manufacturing, or marketing tie up
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Madhya Bharat Agro Products Limited has signed a 10-year Green Ammonia Purchase Agreement with Solar Energy Corporation of India Limited (SECI), a Government of India entity. Under this deal, the company will procure 1,30,000 metric tonnes of green ammonia per annum at a price parity with conventional grey ammonia. There is no upfront payment involved, and supplies are expected to commence roughly three years after execution. The company estimates the agreement will save approximately Rs 6,900 crore in foreign exchange over its 10-year tenure by substituting imported grey ammonia. The arrangement is part of India's National Green Hydrogen Mission and will support the production of low-carbon nitrogenous fertilizers. SECI will act as the intermediary between green ammonia producers and the company.
This long-term offtake arrangement provides the company with secure, cost-competitive raw material supply and reduces dependence on imported ammonia, which is positive for margins and forex risk. However, the benefits are deferred since supplies start only after about three years, and execution depends on the development of domestic green ammonia capacity.