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Summary
The proposed amendments extend accountability from consignors to consignees to close gaps in oversight during transit.
NEW DELHI: The Centre plans to tighten the regulatory framework governing the transport of ammonium nitrate by extending legal responsibility from only consignors to also consignees, depending on who provides the transport vehicle. The move is aimed at closing a long-standing gap that security agencies say has allowed accountability for diverted or misused consignments to be contested during transit.
The push comes against the backdrop of the 2025 Red Fort blast and the seizure of a large consignment in Faridabad.
The Department for Promotion of Industry and Internal Trade (DPIIT) has proposed amendments to the Ammonium Nitrate Rules, 2012, to plug regulatory gaps that enforcement agencies say allow responsibility during transit to be contested or diffused, particularly when consignors and consignees rely on each other’s transport arrangements.
The DPIIT released the draft amendment rules on 4 February, as per a government order reviewed by Mint. The proposed changes under the draft Ammonium Nitrate (Amendment) Rules, 2026, seek to clearly fix accountability based on who provides the transport vehicle, mandating that ammonium nitrate be moved strictly on the strength of a valid transport licence held either by the consignor or the consignee, as the case may be.
Ammonium nitrate is widely used in mining, construction and fertilizer-related applications and is also diverted for illegal use.
According to a government official, the move is intended to strengthen traceability and prevent ambiguity over liability during transit, a loophole that security agencies have flagged in the past. “The draft notification also proposes extending compliance obligations to occupiers, in addition to office-bearers, at licensed premises handling ammonium nitrate," this official said.
The amendments have been opened for public consultation for 30 days, with objections or suggestions invited by the government before the rules are finalized.
The tighter regulatory push follows a series of November 2025 incidents linked to ammonium nitrate. On 9 November 2025, police recovered nearly three tonnes of ammonium nitrate and other bomb-making material from two rented rooms in Faridabad, Haryana, adjoining Delhi. The following evening, on 10 November, a moving car carrying around 30-40 kg of ammonium nitrate from the same stockpile exploded near the Red Fort, a busy tourist area in New Delhi, killing 15 people.
Four days later, on 14 November, while forensic officials were examining the seized explosives at a police facility, the ammonium nitrate detonated accidentally, leaving nine personnel dead and around 30 others injured.
The move follows extensive consultations with security agencies, which have long argued that while ammonium nitrate has legitimate industrial uses, weak oversight over its transport and end-use significantly increases the risk of diversion into illegal supply chains, the official mentioned above said.
Earlier amendments to the regulations had largely focused on licensing rules, storage limits and record-keeping requirements, but enforcement agencies have been pressing for clearer accountability during transit, a stage they consider most vulnerable to diversion and misuse.
“The latest proposal signals a renewed focus on preventive regulation, even as India seeks to balance legitimate industrial demand with internal security imperatives," said Amit Singh, associate professor at the Special Centre for National Security Studies, Jawaharlal Nehru University.
“If finalized, the amendments would strengthen end-to-end accountability and reduce blind spots in the movement of ammonium nitrate, making it harder for consignments to be siphoned off or misused," he said, adding that from a security standpoint, tighter controls during transit and use are critical to preventing diversion and addressing vulnerabilities that have long concerned enforcement agencies.
The process will involve conducting stakeholder consultations and accommodating their suggestions, where they are aligned with the interests of industry as well as national security.
The Indian ammonium nitrate market was valued at $1.5 billion in 2025 and is expected to expand significantly, with the market projected to grow by about $2.6 billion by 2026, reflecting strong demand from agriculture, mining and infrastructure sectors.
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