India enforces one of the world’s most stringent control regimes on ammonium nitrate , a chemical widely used in agriculture and mining but also known for its potential misuse in improvised explosives. Recognised as a special category explosive , ammonium nitrate is governed under the Ammonium Nitrate Rules 2012 , designed to regulate its lifecycle from manufacturing to end-use.
Legal Framework Under Multiple Acts
The Ammonium Nitrate Rules 2012 , framed under the Explosives Act 1884 , form the backbone of India’s regulatory system. Industrial licences for its production fall under the Industries (Development and Regulation) Act, 1951 , reflecting the chemical’s dual-use nature. These overlapping legal mandates ensure rigorous oversight, recognising the security risks associated with ammonium nitrate.
Licensing, Storage and Accountability
Licensing responsibilities are divided across key agencies:
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DPIIT issues industrial licences for manufacturing.
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PESO grants permissions for production, conversion, transport, import, export and possession.
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District Magistrates authorise local storage through warehouse licences.
All license-holders are mandated to maintain accurate stock records and submit monthly accounts detailing quantities received, stored, used, destroyed or lost. This level of traceability helps authorities detect suspicious activities and prevent diversion.
Misuse Risks and Explosive Potential
While pure ammonium nitrate is stable, it becomes a potent explosive when combined with fuel, forming ammonium nitrate fuel oil (ANFO) —commonly used in mining but also misused in high-impact terror attacks globally. Its dangerous potential has led to strict controls, regular inspections and coordinated enforcement across agencies.
Integrated Oversight to Prevent Diversion
The regulatory mechanism involves industrial, safety and district-level authorities working together to minimise loopholes. By enforcing strict permissions, reporting norms and supply-chain monitoring, India aims to prevent unauthorised access to a chemical frequently linked to illicit explosive manufacture.
Exam Points
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Regulated under Ammonium Nitrate Rules 2012 (Explosives Act 1884).
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Classified as a special category explosive in India.
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PESO licenses manufacturing, transport, import, export and possession.
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Monthly stock accounts mandatory for all license-holders.
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AN becomes explosive when mixed with fuel ( ANFO ).
Month: Current Affairs - November 14, 2025
Category: Internal Security & Explosives Regulation