State-owned GAIL (India) Limited has entered into a memorandum of understanding (MoU) with the Government of Chhattisgarh to evaluate the development of a new gas-based fertiliser manufacturing facility in the state.
Scope of the Proposed Project
Under the MoU, GAIL will undertake detailed techno-economic feasibility studies for setting up a 12.7 lakh metric tonne (LMT) urea plant. The proposed facility is planned along GAIL’s Mumbai–Nagpur–Jharsuguda natural gas pipeline (MNJPL) corridor, providing access to gas supply and supporting infrastructure.
Investment Decision Timeline
The company will take a final investment decision after assessing the outcomes of the feasibility studies. Key parameters such as project viability, capital costs, operational efficiency and long-term economic benefits will be evaluated before proceeding further.
Support from the State Government
The Chhattisgarh government has committed comprehensive support for the proposed project, including:
- Assistance in conducting feasibility studies
- Identification and allocation of suitable land
- Coordination among state departments
- Facilitation of statutory and regulatory approvals
- Support in development of required infrastructure
MoU Signing Ceremony
The MoU was signed in the presence of Chhattisgarh Chief Minister Vishnu Deo Sai, Rajat Kumar, Secretary (Commerce and Industries), Government of Chhattisgarh, and Rajeev Kumar Singhal, Director (Business Development), GAIL (India) Limited.
The proposed project aligns with efforts to expand domestic fertiliser capacity and strengthen the use of natural gas in India’s fertiliser sector.
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