GAIL (India) Limited and Rashtriya Chemicals and Fertilizers Limited (RCF) have signed a Memorandum of Understanding (MoU) to jointly develop a gas-based urea manufacturing plant in Maharashtra. The project will be implemented through a Special Purpose Vehicle (SPV) and is expected to strengthen India’s fertilizer production capacity while supporting the country’s goal of achieving greater self-reliance in the sector.
The proposed facility will have an annual production capacity of 1.27 million metric tonnes (MMTPA) of urea and is planned to be established in the Vidarbha region of Maharashtra. The location has been selected along GAIL’s Mumbai–Nagpur–Jharsuguda Natural Gas Pipeline (MNJPL), ensuring a reliable supply of natural gas required for fertilizer production.
The partnership combines GAIL’s expertise in natural gas infrastructure with RCF’s extensive experience in fertilizer manufacturing, project development and plant operations. Both companies will work together to take the project from the planning stage through construction and commissioning, with the aim of developing a modern and efficient fertilizer manufacturing facility.
The MoU was signed by Sanjay Agarwal, Executive Director (Business Development & Start-up), GAIL, and Jyoti Patil, Executive Director (Projects, Corporate & Coordination), RCF, in the presence of Deepak Gupta, Chairman and Managing Director, GAIL, and S Shivakumar, Chairman and Managing Director, RCF. Senior officials from both organisations also attended the signing ceremony.
Speaking on the occasion, Deepak Gupta, CMD, GAIL (India) Limited, said, “This project is in line with GAIL’s strategy to create long-term value through greater utilisation of natural gas while supporting India’s energy security objectives. Our partnership with RCF brings together complementary strengths in energy infrastructure and fertilizer manufacturing. The proposed project also supports the Government of India’s National Investment Policy for Urea-2026 and contributes to the vision of an Atmanirbhar Bharat.”
S Shivakumar, CMD, Rashtriya Chemicals and Fertilizers Limited, said, “We are pleased to partner with GAIL for this important project in Maharashtra. The new fertilizer plant is expected to play a significant role in meeting the country’s growing demand for urea, reducing dependence on imports and promoting industrial growth in the Vidarbha region. By combining RCF’s operational expertise with GAIL’s strong gas infrastructure, we aim to establish a world-class fertilizer manufacturing facility.”
The project is expected to improve fertilizer availability for farmers, strengthen domestic production and reduce India’s reliance on imported urea. It is also expected to generate employment opportunities and encourage industrial development in the Vidarbha region, while supporting the growth of related industries and local businesses.
The collaboration marks another important step in expanding India’s gas-based industrial ecosystem and demonstrates the commitment of both GAIL and RCF to developing sustainable, efficient and globally competitive manufacturing facilities. Once operational, the project is expected to contribute significantly to the country’s food security, industrial development and long-term economic growth.
