New Delhi: State-owned energy major GAIL (India) Limited and Rashtriya Chemicals and Fertilizers Limited (RCF) have signed a Memorandum of Understanding (MoU) to jointly establish a 1.27 Million Metric Tonnes Per Annum (MMTPA) gas-based urea manufacturing plant in Maharashtra.
The project will be implemented through a Special Purpose Vehicle (SPV) and is proposed to come up in the Vidarbha region, marking a significant step towards enhancing India’s domestic fertilizer production capacity and reducing dependence on imports.
Project to Be Developed Along GAIL’s Gas Pipeline
The proposed fertiliser plant is planned along GAIL’s Mumbai–Nagpur–Jharsuguda Natural Gas Pipeline (MNJPL), ensuring reliable natural gas supply for the production facility.
The strategic location is expected to improve logistical efficiency while supporting industrial development in the Vidarbha region.
To execute the project, GAIL and RCF will work together from the conceptual stage through implementation, combining their technical expertise and operational strengths.
MoU Signed in Presence of CMDs
The Memorandum of Understanding was signed by:
- Sanjay Agarwal, Executive Director (Business Development & Start-up), GAIL
- Jyoti Patil, Executive Director (Projects, Corporate & Coordination), RCF
The signing ceremony was attended by:
- Deepak Gupta, Chairman & Managing Director, GAIL
- S. Shivakumar, Chairman & Managing Director, RCF
Senior officials present included R.K. Singhal, Director (Business Development), GAIL, Nazhat J. Shaikh, Director (Finance), RCF, and Ritu Goswami, Director (Technical), RCF.
Supporting Energy Security and Atmanirbhar Bharat
Speaking on the occasion, Deepak Gupta, CMD of GAIL, said the proposed fertilizer project aligns with the company’s long-term strategy of enhancing natural gas utilisation while contributing to India’s energy security.
He said the partnership combines GAIL’s strengths in the natural gas value chain with RCF’s extensive expertise in fertilizer manufacturing and project execution.
Gupta also noted that the collaboration is aligned with the Government of India’s National Investment Policy for Urea-2026 (NIPU-2026) and supports the broader vision of Atmanirbhar Bharat by strengthening domestic urea production.
RCF Sees Major Boost for Fertilizer Production
RCF Chairman and Managing Director S. Shivakumar described the partnership as a significant step towards meeting the country’s growing fertilizer demand.
He said the proposed project is expected to:
- Increase domestic urea production
- Reduce dependence on fertilizer imports
- Promote industrial development in Maharashtra’s Vidarbha region
- Create a world-class gas-based fertilizer manufacturing facility
Shivakumar added that the partnership leverages RCF’s decades of experience in fertilizer production, project development and marketing alongside GAIL’s robust gas infrastructure and energy expertise.
Strategic Push for Domestic Fertilizer Capacity
The proposed plant is expected to play an important role in strengthening India’s fertilizer ecosystem by ensuring a stable domestic supply of urea, supporting farmers and reducing import dependence.
The collaboration also reflects the government’s focus on expanding gas-based fertilizer production through strategic partnerships between public sector enterprises while promoting industrial growth in emerging regions.
About GAIL
GAIL (India) Limited is a Maharatna Central Public Sector Enterprise under the Ministry of Petroleum and Natural Gas. As India’s leading integrated energy company, GAIL operates across the natural gas value chain, including natural gas transmission and marketing, LNG sourcing and regasification, LPG transmission, petrochemicals, city gas distribution, renewable energy, and upstream exploration and production.
About Rashtriya Chemicals and Fertilizers Limited (RCF)
Rashtriya Chemicals and Fertilizers Limited (Rashtriya Chemicals and Fertilizers Limited) is a leading public sector undertaking under the Government of India engaged in the production and marketing of fertilizers and industrial chemicals, playing a key role in supporting India’s agricultural sector and chemical industry.
