Draft Ammonium Nitrate Amendment Rules 2026 Propose CCTV and License Transfer Reforms

Background: The Ammonium Nitrate Regulatory Framework

Ammonium Nitrate (AN) is one of the most tightly regulated substances in India due to its dual-use nature it is an essential input for:

• Agriculture includes fertilizer, primarily in compound fertilizers and straight ammonium nitrate where permitted.
• Mining and infrastructure are a core explosive ingredient in ANFO Ammonium Nitrate Fuel Oil.
• Industrial processes include quarrying, demolition, coal mining, and infrastructure construction.

The primary regulatory framework is the Ammonium Nitrate Rules, 2012, notified under the Explosives Act, 1884, and administered by the Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industry, through the Petroleum and Explosives Safety Organization (PESO).

The rules govern:

• Manufacture of ammonium nitrate
• Import and export of ammonium nitrate
• Storage at licensed storehouses
• Transportation across India
• Possession by end users

India's history with ammonium nitrate is marked by serious safety incidents globally and domestically, the Beirut explosion of 2020 (2,750 tons of AN triggered a catastrophic blast), and various incidents in Indian ports and mining operations have kept ammonium nitrate under sharp regulatory scrutiny.

The Ammonium Nitrate (Amendment) Rules, 2025, had already extended the license validity from 5 years to 10 years (effective April 2025). The Draft Amendment Rules, 2026 go further, proposing structural reforms in the security monitoring and license administration.

What the Draft Ammonium Nitrate Amendment Rules 2026 Propose?

On February 3, 2026, the draft regulations were released in the Official Gazette under G.S.R. 104(E), with a 30-day period for public comment. After considering any complaints and suggestions, the final notification will be sent. The main suggestions are listed below: 

1. CCTV surveillance is required in ammonium nitrate storage facilities: The installation of CCTV cameras at all authorized ammonium nitrate storage facilities is the most important recommended modification. Important components:

• Continuous 24×7 monitoring of storehouse premises through CCTV
• Secure digital access to CCTV feeds must be provided to:
  • PESO (the licensing authority)
  • District Magistrate / local authority (for emergency response planning)
  • Designated police authority
• Minimum retention period for CCTV footage must be stored for a specified minimum period (typically 30–90 days, as may be specified in the final rules)
• Tamper-proof and weather-resistant cameras must be capable of operating in the environmental conditions of the storehouse location.
• Coverage requirements say all entry and exit points, storage areas, loading/unloading zones, and perimeter to be covered.
• Failure protocol operators must notify PESO within a defined timeframe in case of CCTV system failure and restore functionality within a specified period.

2. Licences Transfer Reforms: The second major proposal addresses the transfer of ammonium nitrate licences, a provision that previously had limited or ambiguous procedural framework:

• Formal licence transfer mechanism for licences held for:
  • Storage
  • Possession
  • Transport (including clarity on whose licence applies when a vehicle is provided by the transporter vs by the consignee/consignor)
• Transfer triggers being contemplated include:
  • Change of ownership of business (e.g., sale of a mining company's assets)
  • Transfer on the death of a sole proprietor
  • Corporate mergers and amalgamations
  • Assignment of licensed premises as part of a going concern sale
• Clarity on transport licences: Whether the vehicle is supplied by the consignor, consignee, or a third-party carrier, the draft also makes it clear whose transport licence is applicable based on the agreement. This directly resolves a long-standing cause of misunderstanding in compliance and enforcement. 

•    Digitization of licence transfer process through the PESO online portal, reducing the need for physical visits and paper-based applications.

3. Refined Definitions and Operational Clarity

• Updating definitions to align with:
  • Current industry practices in mining and infrastructure
  • Advances in AN emulsion technology (emulsion matrix, heavy ANFO, etc.)
• Clearer language on:
  • What constitutes "possession" vs "storage"
  • Quantity thresholds for different compliance obligations

Implementation Date

The implementation timeline for the proposed rules begins with the draft notification issued on 3 February 2026. Following the publication of the draft, stakeholders were provided a 30-day public comment period from the date copies of the Gazette were made available to the public, with the deadline for submitting objections and suggestions falling approximately in early March 2026. After reviewing and considering all feedback received during this consultation period, the Department for Promotion of Industry and Internal Trade (DPIIT) will issue the final rules through a subsequent Gazette notification. As per the draft provisions, the rules will come into force on the date of their final publication in the Official Gazette, meaning enforcement will commence immediately upon notification. Based on the expected timeline for finalization and review of public comments, the final notification and enforcement are anticipated to take place in mid-to-late 2026. 

Why DPIIT Implemented these Reforms: The Core Need

1. Post-Beirut Global Reset on Ammonium Nitrate Safety: The 2020 Beirut port explosion caused by improperly stored ammonium nitrate was a watershed event globally that prompted comprehensive reviews of AN storage safety frameworks worldwide, forced governments, including India's, to evaluate whether current surveillance and access control mechanisms were adequate, and India's own audit of major AN storage sites revealed gaps in real-time monitoring.

Mandatory CCTV is the direct, technology-enabled response to Beirut: if authorities can see what is happening at every licensed storehouse in real time, catastrophic accumulation and mishandling are detected before they become irreversible.

2. Preventing Diversion to Terrorist and Criminal Activity: Ammonium nitrate is the primary ingredient in improvised explosive devices (IEDs). India has experienced:

• Multiple IED attacks using AN-based explosives
• Illegal diversion of mining-grade AN from authorized supply chains

3. Accident Prevention and Emergency Response: In addition to intentional misuse, AN storehouse is at risk for flooding (wet AN can self-ignite under certain conditions), contamination (mixing with incompatible materials), and fire (AN decomposes under fire conditions and can release poisonous fumes and deflagrate). Fire services, PESO inspectors, and district magistrates have access to CCTV feeds. 

4. Alignment with Broader DPIIT Safety Modernization: DPIIT's Explosives Division (under which AN Rules fall) has been systematically modernizing all its regulatory frameworks:

• 2021: SMPV, Calcium Carbide, and AN amendment
• 2025: AN licence validity extended to 10 years
• 2026: CCTV, licence transfer, and definitional refinements

This is part of a sustained effort to bring India's explosives and hazardous chemical regulatory framework to global best practices while simultaneously reducing unnecessary administrative burden.

Impact on Businesses in India in 2026

Businesses that store, transport, import, manufacture, and use ammonium nitrate (AN) will be directly impacted by the proposed revisions. The main effects on the industry are listed below: 

• Mining and Quarrying Companies: Mining and quarrying businesses, including coal, iron ore, limestone, granite, and aggregate operators, will be most affected as they hold a large number of AN licences. They will be required to install CCTV systems with round-the-clock monitoring capabilities at licensed AN storehouse and provide remote access to authorities. Companies operating multiple storage facilities may face higher compliance costs. The draft also simplifies licence transfers during mergers and acquisitions.
• Construction and Infrastructure Companies: Businesses that utilize AN-based explosives in roads, tunnels, railroads, dams, and other infrastructure projects must install CCTV systems at storage facilities and account for these expenses in future project budgets. To ensure compliance throughout the project lifespan, temporary project sites may need portable surveillance systems.
• Manufacturers and importers of explosives: Manufacturers of ANFO, emulsion explosives, and other AN-based explosives are required to make sure that their storage facilities meet the new CCTV regulations and give regulators remote access. Additionally, importers who store AN in ports or warehouses must guarantee sufficient surveillance coverage. 
• Transporters: The draft makes transport license obligations more clear, particularly when the owner of the vehicle and the owner of the products are not the same. This is anticipated to minimize disagreements during shipping and inspections and lessen compliance issues.
• Fertilizer Companies: CCTV cameras and remote access for authorities must be installed by fertilizer plants, blending facilities, and storage facilities that hold authorized amounts of AN. Additionally, businesses going through mergers, acquisitions, or restructuring will be able to preserve operational continuity thanks to the more transparent license transfer requirements. 

How Businesses Will Be Compliant?

Step-by-Step Compliance Pathway for businesses is as follows:

Step 1: Conduct an Inventory of Licensed AN Storage Facilities

Begin by identifying all licensed ammonium nitrate storage locations and assessing their layout, entry and exit points, existing security arrangements, and network connectivity to understand site-specific compliance requirements.

Step 2: Create a CCTV surveillance system that complies. 

To create a CCTV strategy that guarantees full coverage of the storeroom, includes suitable camera specifications, offers sufficient video storage, and permits safe remote access for regulatory authorities, hire a qualified security systems supplier.

Step 3: Evaluate the Needs for Connectivity

Analyse each site's internet or network connectivity availability and dependability. To guarantee continuous monitoring access, remote locations could need specialized communication infrastructure or backup connectivity options. 

Step 4: Install and Test the Surveillance Infrastructure.

Deploy the CCTV system, configure video storage and retention settings, verify the remote access functionality, and test system performance to ensure compliance with regulatory requirements.

Step 5: Establish Access Management Procedures

Create secure access credentials for authorised authorities and implement a process for maintaining user records, monitoring access activity, and safeguarding system security.

Step 6: Implement Ongoing Maintenance and Reporting Protocols

Develop a preventive maintenance schedule for surveillance equipment and establish standard operating procedures for reporting system failures, notifying authorities, and carrying out timely corrective actions.

Step 7: Manage Licence Transfers During Ownership Changes

Businesses undergoing mergers, acquisitions, or restructuring should submit the required transfer application and supporting documents through the PESO portal and obtain approval before operational control changes hands.

Benefits Businesses Get After Implementation

1. Operational and Compliance Benefits

2. Safety Benefits

Is This a Right Decision or an Additional Burden?

1. Why It Is the Right Decision

2. Where It Adds Burden

Balanced verdict: The burden is real but proportionate. The safety and security case for mandatory CCTV monitoring of ammonium nitrate storage is overwhelming. The cost of a single serious incident in terms of human life, environmental damage, property destruction, and legal liability would vastly outweigh the aggregate cost of CCTV compliance across the industry. This is unambiguously the right decision.

How the Amendment improve quality, Environmental Conditions, and Ethical Practices?

Below are the Broader Benefits of the Proposed Amendments that are as follows:

1. Improved Industrial Safety and Operational Standards

By encouraging increased responsibility and compliance, the mandated CCTV surveillance requirements are anticipated to improve all the safety governance throughout ammonium nitrate (AN) storage facilities. In addition to improving supervisory control and encouraging adherence to the established safety procedures, continuous monitoring helps organizations detect and resolve safety infractions more successfully.

Additionally, the availability of recorded video can greatly improve the quality of incident investigations by assisting businesses and authorities in precisely identifying the underlying causes, differentiating between isolated incidents and systemic flaws, and putting corrective measures in place that lessen the chance of recurrence. 

2. Enhanced Environmental Protection

The proposed measures can help minimise the environmental risks associated with ammonium nitrate storage. Incidents involving AN, such as fires or explosions, have the potential to cause soil contamination, air pollution from hazardous combustion by-products, and water contamination through runoff.

Continuous surveillance and early detection capabilities can also facilitate faster emergency response, thereby reducing the severity and environmental impact of such incidents. Furthermore, increased monitoring is likely to encourage better housekeeping practices, compliance with prescribed storage distances, proper drainage management, and the segregation of incompatible substances at storage sites.

3. Strengthening Ethical and Responsible Industry Practices

The introduction of the enhanced surveillance and clearer regulatory controls is also expected to improve the transparency and accountability throughout the ammonium nitrate supply chain. Continuous monitoring and robust licence management can reduce the risk of diversion of AN for unauthorised or illegal purposes while creating a traceable record from manufacture or import through to end use.

The amendments also promote the accountability among storehouse operators, transporters, contractors, and facility managers by ensuring that compliance activities are documented and verifiable. Importantly, these measures help to establish a level playing field across the industry by ensuring that all the licence holders are subject to consistent security and compliance requirements.

Business Opportunities Emerging from the Proposed Amendments

1. Growth in Demand for CCTV and Security Integration Services

The proposed mandatory surveillance requirements are expected to create significant opportunities for security technology providers, system integrators, and surveillance infrastructure companies. Businesses that can design, supply, install, and maintain CCTV systems in accordance with regulatory requirements are likely to experience increased demand from mining operators, construction companies, explosive manufacturers, and other licensed ammonium nitrate (AN) storage facilities.

Particularly strong demand is expected for the specialized surveillance solutions, including pan-tilt-zoom (PTZ) cameras for large-area monitoring, infrared cameras for round-the-clock surveillance, explosion-resistant cameras for the hazardous environments, industrial-grade Network Video Recorders (NVRs), and secure remote-access platforms that enable regulatory oversight. In addition, long-term maintenance and support contracts are likely to become an important service segment as organizations seek to ensure continuous compliance.

2. Expansion Opportunities for Network Connectivity Providers

The demand for dependable communication infrastructure will also rise as a result of the surveillance requirements, especially in remote mining and industrial areas where network connectivity may now be restricted. Businesses may need to upgrade or implement specialized connectivity solutions in order to facilitate ongoing surveillance and remote access by regulatory authorities.

Telecom companies, IT infrastructure providers, and suppliers of connectivity solutions that offer satellite communication services, industrial-grade 4G/5G networking solutions, dedicated fiber connectivity, wireless leased lines, and other robust communication technologies will benefit from this. Therefore, it is anticipated that the proposed revisions will encourage investment in digital infrastructure in the mining, explosives, and manufacturing sectors. 

3. PESO Licence Compliance Advisory (Direct Opportunity for Corpseed

Corpseed can build an "Ammonium Nitrate Licence Compliance Pack":

5. Increased Demand for Safety Audit and Compliance Services

It is anticipated that the implementation of required CCTV surveillance at ammonium nitrate (AN) storage facilities will open up new opportunities for audit firms, safety consultants, and compliance experts. In order to evaluate regulatory preparedness, confirm surveillance coverage, and continue to comply with PESO standards, organizations will need more and more expert assistance.

Pre-inspection compliance audits, yearly safety management reviews, CCTV system evaluations, and emergency response planning services are all possible offerings from the service providers. These services can also assist companies in finding compliance gaps, improving risk management procedures, and guaranteeing ongoing adherence to legal requirements. 

6. Legal and Advisory Services for Licence Transfers

There will probably be a need for specialized legal and regulatory advising services as a result of the planned licence transfer structure. Businesses can navigate ownership changes while adhering to regulations with the help of law firms, corporate advisors, and compliance consultants with experience in the explosives and chemical industries.

Structuring mergers and acquisitions involving the ammonium nitrate licences, assisting with corporate restructuring projects, offering this guidance on succession planning for licence holders, and representing clients in PESO licence transfer proceedings are some of the major advisory opportunities. Expert advice in this area is anticipated to grow in value as companies look to minimize operational interruptions during the ownership changes. 

Corpseed's Position in the Ammonium Nitrate Compliance Market

For Corpseed, the 2026 draft amendments reinforce and expand an existing compliance service vertical:

• Explosive and Hazardous Chemical licensing (AN licence, PESO approvals) is already part of the regulatory compliance landscape Corpseed operates
• The CCTV compliance requirement creates an advisory angle helping mining and infrastructure clients understand what exactly is required, how to document it for PESO, and managing the PESO interface.
• The licence transfer reforms create a high-value advisory service for corporate clients navigating M&A in the mining and infrastructure sector.

"The 2026 Draft AN Rules are Coming: Are Your Storehouses CCTV-Ready and Are Your Licences Transfer-Proof?"