GAIL (India) Limited and Rashtriya Chemicals and Fertilizers Limited (RCF) have entered into a Memorandum of Understanding (MoU) to collaboratively establish a gas-based fertilizer production facility in Maharashtra via a Special Purpose Vehicle (SPV).
The planned facility aims to produce 1.27 million metric tonnes per annum (MMTPA) of urea and is set to be located in the Vidarbha region alongside GAIL’s Mumbai-Nagpur-Jharsuguda Natural Gas Pipeline (MNJPL).
As part of this agreement, both companies will combine their expertise—GAIL in natural gas infrastructure and RCF in fertilizer manufacturing—to advance the project from its initial concept to full implementation.
The MoU was executed by Sanjay Agarwal, Executive Director (Business Development & Start-up) at GAIL, and Jyoti Patil, Executive Director (Project, Corporate & Coordination) at RCF, in the presence of GAIL’s Chairman and Managing Director Deepak Gupta and RCF’s Chairman and Managing Director S. Shivakumar.
Other senior officials from both organizations, including GAIL’s Director (Business Development) RK Singhal, RCF’s Director (Finance) Nazhat J Shaikh, and RCF’s Director (Technical) Ritu Goswami, also witnessed the signing.
During the event, GAIL CMD Deepak Gupta remarked that this fertilizer project aligns with the company’s goal of advancing long-term value through natural gas usage, while also contributing to India’s energy security.
“We are happy to team up with RCF, a prominent player in the fertilizer industry with established capabilities. This collaboration merges GAIL’s strengths in the natural gas sector with RCF’s extensive know-how in fertilizer production and project execution. Furthermore, this partnership supports the Government of India’s recently approved National Investment Policy for Urea-2026 (NIPU-2026) aimed at achieving Atmanirbhar Bharat,” Gupta stated.
RCF CMD S. Shivakumar mentioned that the initiative is expected to address the increasing fertilizer demand in the country, while simultaneously lowering import dependency and fostering industrial growth in the Vidarbha area.
“By leveraging RCF’s comprehensive expertise in fertilizer operations, project development, and marketing alongside GAIL’s solid gas infrastructure and energy knowledge, this collaboration has the potential to establish a world-class fertilizer facility,” he noted.
The companies believe that the proposed facility will enhance domestic urea production capabilities and aid the government’s aim for increased self-sufficiency in fertilizer production, in line with the National Investment Policy for Urea-2026.
