Maharashtra's $3 Billion Green Ammonia Project Faces Cancellation As IPO-Bound INOX Air Products Cites Viability Concerns
· Free Press Journal
Maharashtra's proposed $3 billion green ammonia project faces possible cancellation after its developer, IPO-bound INOX Air Products, reportedly decided against proceeding because of commercial viability concerns.
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According to Moneycontrol, a person familiar with the development indicated that the company had withdrawn from the project, which was expected to support Maharashtra's industrial decarbonisation plans.
The Maharashtra government signed a memorandum of understanding (MoU) with INOX Air Products during the 2024 World Economic Forum summit in Davos.
The agreement envisaged a green ammonia manufacturing facility with an annual production capacity of 500,000 metric tonnes.
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In its Draft Red Herring Prospectus (DRHP), dated Oct 5, INOX Air Products disclosed that it had decided against pursuing a green ammonia project agreed upon with a state government.
Although the filing did not identify Maharashtra, the Moneycontrol report linked the disclosure to the state's proposed facility.
The company attributed its decision to an assessment of the project's commercial feasibility.
It also cautioned investors that future expansion initiatives could face delays, reductions or cancellation because of market conditions, regulatory challenges and execution risks.
Financing difficulties, cost overruns and infrastructure-related obstacles could further affect its growth plans.
The proposed facility was considered important for reducing dependence on fossil fuels across Maharashtra's industrial centres, including Trombay, Thal and Taloja.
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The reported withdrawal reflects broader challenges facing India's emerging green ammonia industry, particularly concerns about pricing and long-term purchase arrangements.
The Solar Energy Corporation of India's (SECI) first green ammonia tender, covering 724,000 metric tonnes annually, was launched in 2024 but experienced delays exceeding a year.
Developers cited uncertainty surrounding the financial viability of proposed purchase arrangements.
In March 2026, successful bidders raised concerns about an eight-month delay in finalising Purchase and Sale Agreements (PSAs).
S&P Global also reported potential obstacles involving grid connectivity and land allocation.
Established in April 1963, INOX Air Products is jointly owned by the INOX Group and US-based Air Products Group.
The company claims a 22.4% revenue market share in India's industrial, medical, electronic and speciality gases sector in FY26, serving more than 3,000 customers.