GAIL (India) Limited has signed a Memorandum of Understanding (MoU) with the Government of Chhattisgarh to develop a gas-based fertilizer project in the state. The project involves the establishment of a urea manufacturing plant with a capacity of 12.7 Lacs Metric Ton (LMT). GAIL will conduct techno-economic studies and the government will provide facilitation and support for the project.
Partnership for Fertilizer Production
GAIL (India) Limited and the Government of Chhattisgarh have entered into a collaboration to develop a greenfield gas-based fertilizer project. The official signing of the Memorandum of Understanding (MoU) took place on December 23, 2025, in the presence of Chhattisgarh’s Chief Minister, Shri Vishnu Deo Sai. This collaboration aims to boost fertilizer production and industrial growth in the region.
Project Details and Scope
According to the MoU, GAIL will conduct techno-economic studies to set up a urea manufacturing plant with a capacity of 12.7 Lacs Metric Ton (LMT). The plant is proposed to be located along GAIL’s Mumbai–Nagpur-Jharsuguda Natural Gas Pipeline (MNJPL) corridor. The Government of Chhattisgarh will support the project by providing facilitation, land allocation, and coordination with relevant authorities.
GAIL’s Role and Objectives
GAIL seeks to contribute to the fertilizer sector to strengthen domestic fertilizer production. This project aligns with the company’s broader objective of supporting the development of downstream natural gas-based industries. The investment decision will be based on the techno-economic evaluation.
Government Support and Facilitation
The Government of Chhattisgarh will provide facilitation across all stages of the project, including support for feasibility studies, identification and allocation of suitable land parcels, coordination with State and Central authorities, facilitation for statutory approvals and enabling infrastructure necessary for project implementation.
Source: BSE