GAIL (India) Limited has signed a Memorandum of Understanding (MoU) with Krishak Bharati Cooperative Limited (KRIBHCO) to explore the feasibility of establishing a gas-based fertilizer project in Andhra Pradesh. The proposed project aims for an annual urea production capacity of 1.27 Million Metric Tons. This collaboration marks a strategic step for GAIL in diversifying its business interests and supporting the country’s agricultural and industrial growth.
GAIL and KRIBHCO Ink Strategic Partnership
GAIL (India) Limited, India’s premier natural gas company, has entered into a significant Memorandum of Understanding (MoU) with Krishak Bharati Cooperative Limited (KRIBHCO). The agreement focuses on exploring the potential for a new gas-based fertilizer project within the state of Andhra Pradesh.
Project Scope and Capacity
The proposed urea production facility is designed with a substantial annual capacity of 1.27 Million Metric Tons Per Annum (MMTPA). This project is planned to be located in Mulapeta, Srikakulam district, leveraging GAIL’s existing Srikakulam Angul Natural Gas Pipeline (SAPL). The collaboration between GAIL and KRIBHCO will be undertaken through a Joint Venture mode, combining their expertise for successful implementation.
Strategic Importance
Shri V Sudhakar Chowdary, Chairman of KRIBHCO, highlighted the MoU as the beginning of a strategic partnership, emphasizing the synergy between KRIBHCO’s experience and GAIL’s leadership in the natural gas sector. Shri R. K. Singhal, Director (Business Development) at GAIL, added that this initiative represents a strategic integration of India’s gas and fertilizer value chains, underscoring GAIL’s commitment to sustainable industrial and agricultural development.
Source: BSE
