Andhra Pradesh incentives for AM's ammonia plant

A USD 215 million subsidy package has been introduced to support renewable ammonia production, offering up to 25% of CAPEX, capped at INR 18.5 million (USD 215,400) per 1 ktpa of capacity—though the total estimated CAPEX of USD 1.5 billion means the subsidy won’t reach the full 25%. The support is disbursed over five years post-commissioning. Additional incentives include a 20% CAPEX subsidy for desalination plants, exemptions from stamp duty, reduced water supply charges, a five-year exemption from state GST on renewable hydrogen sales, and reimbursement of electricity duties. This initiative contributes to the state’s goal of producing 1.5 Mtpa of renewable hydrogen by 2047, as outlined in its 2023 Integrated Clean Energy Policy.

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