GAIL (India) Limited has taken a significant step toward expanding India’s fertilizer manufacturing capacity by entering into a non-binding Memorandum of Understanding with the Government of Chhattisgarh for the development of a greenfield gas-based fertilizer project in the state.
The MoU was signed in the presence of Chhattisgarh Chief Minister Vishnu Deo Sai, marking an important collaboration between the state government and one of India’s leading natural gas companies. The agreement was formalised by Rajat Kumar, Secretary (Commerce & Industries), Government of Chhattisgarh, and Rajeev Kumar Singhal, Director (Business Development) at GAIL.
Under the terms of the MoU, GAIL will conduct detailed techno-economic feasibility studies for setting up a urea manufacturing plant with an annual capacity of 12.7 lakh metric tonnes. The proposed facility is planned to be strategically located along GAIL’s Mumbai–Nagpur–Jharsuguda Natural Gas Pipeline corridor, a key gas transmission route that ensures reliable feedstock availability for large-scale industrial projects.
Based on the outcome of the techno-economic evaluation, GAIL will take an investment decision on the establishment of the fertilizer plant. The project, if approved, is expected to strengthen domestic urea production, reduce dependence on imports, and support India’s broader goals of agricultural self-sufficiency and energy-linked industrial development.
The Government of Chhattisgarh has committed to providing comprehensive facilitation throughout the project lifecycle. This includes support for feasibility studies, identification and allocation of suitable land parcels, coordination with state and central government authorities, assistance with statutory approvals, and development of enabling infrastructure required for timely project execution.