The Indian government is considering extending viability gap funding (VGF) for two years to support the green ammonia industry, aiming to boost production by 2 million tonnes by 2025-26. The Ministry of New and Renewable Energy along with other key ministries have proposed a VGF scheme to lower the cost of capital for green ammonia projects and enhance global competitiveness. The proposal, backed by a study from various organizations, is part of India's efforts to transition to renewable energy and reduce carbon emissions. The government's focus on green fuels like hydrogen and ammonia is evident in the Green Hydrogen/ Green Ammonia Policy notified in February 2022. Financial incentives and VGF subsidies are being leveraged to make production competitive and attract private investments. The upcoming Budget 2024-25 may announce the VGF scheme, retroactively applicable to projects announced after December 2021. To bridge the cost gap between green and grey ammonia, the government plans to introduce contract-for-difference schemes. These schemes would ensure producers receive support to cover the price difference, making green ammonia more financially viable. The estimated cost of green ammonia stands at $700 to $750 per tonne, posing a price gap of $300 to $350 compared to grey ammonia. India has already announced significant green ammonia production capacity, targeting 4 MTPA green hydrogen capacity in the next few years. The Ministry of New and Renewable Energy had earlier announced auctions for subsidies to drive green hydrogen uptake in ammonia production and oil refining, with plans to incentivize both industries. The auctions aim to support the growth of green fuel production and move towards achieving renewable energy targets.