Green ammonia Maharashtra project faces collapse as INOX drops $3B, 500,000 t plan
A $3B green ammonia project in Maharashtra is set to be dropped after developer INOX Air Products decided the 500,000 tonnes-a-year plant was not commercially viable, according to its draft IPO filing and a Moneycontrol report cited by the Free Press Journal on October 8.
In its Draft Red Herring Prospectus dated October 5, INOX Air Products disclosed that it had decided against a green ammonia project agreed with a state government, citing a commercial feasibility assessment. The filing did not name the state. Moneycontrol linked it to the Maharashtra facility announced through a memorandum of understanding signed at the 2024 World Economic Forum in Davos.
The Maharashtra green ammonia plant was meant to supply low-carbon feedstock to industrial clusters at Trombay, Thal and Taloja. The prospectus also warned investors that other expansion plans could be delayed, reduced or cancelled because of market conditions, regulation, financing, cost overruns or infrastructure constraints.
The withdrawal fits a wider pattern. The Solar Energy Corporation of India’s first green ammonia tender, covering 724,000 tonnes a year and launched in 2024, ran more than a year late, and winning bidders complained in March 2026 about an eight-month delay in finalizing purchase and sale agreements. S&P Global has also flagged grid connection and land allocation as obstacles.
SECI is still pushing ahead with smaller, plant-specific offtakes, including the 54,000 t/yr green ammonia tender for a Maharashtra fertilizer plant with bids due October 27. Fertilizer producers such as GSFC are taking a different route, seeking strategic partners for a 500,000 t/yr export project at Sikka.
Source: Free Press Journal
Maharashtra green ammonia project: key questions answered
Not publicly. INOX Air Products’ prospectus says it will not pursue a green ammonia project agreed with an unnamed state government. The link to Maharashtra comes from Moneycontrol, citing a person familiar with the matter. Neither the company nor the state government had publicly confirmed a cancellation in the reports.
Founded in April 1963, it is a joint venture between India’s INOX Group and U.S.-based Air Products. The company says it held a 22.4% revenue share of India’s industrial, medical, electronic and specialty gases market in FY26 and serves more than 3,000 customers.
Reports point to three recurring issues: uncertain long-term offtake pricing, slow finalization of purchase agreements under SECI tenders, and practical constraints on grid connectivity and land. Without a bankable buyer contract, developers struggle to finance electrolyzers and renewable power at the scale a 500,000 t/yr plant requires.
The immediate supply impact is nil, as the plant was not built. The signal is about pace: large merchant green ammonia projects without a captive buyer look harder to finance, while smaller, fertilizer-plant-linked tenders and producer-led projects with existing port and storage assets appear more likely to proceed.
Key markers are bids in SECI’s fertilizer-linked green ammonia tenders, including the Maharashtra round closing October 27, any statement from the Maharashtra government on the Davos MoU, and whether other developers disclose similar reassessments in filings.
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