GAIL (India) Limited and Rashtriya Chemicals and Fertilizers Limited (RCF) have entered into a Memorandum of Understanding (MoU) to collaboratively create a gas-based fertilizer project in Maharashtra, utilizing a Special Purpose Vehicle (SPV).
The planned urea production facility is set to have a capacity of 1.27 million metric tonnes per annum (MMTPA) and will be located in the Vidarbha region, along GAIL’s Mumbai-Nagpur-Jharsuguda Natural Gas Pipeline (MNJPL).
This agreement will see GAIL and RCF combine their strengths to advance the project from its initial concept to full implementation, leveraging their expertise in natural gas infrastructure and fertilizer production.
During the announcement, GAIL CMD Deepak Gupta highlighted that the fertilizer initiative supports the company’s vision of fostering long-term value through natural gas while enhancing India’s energy security.
“We are pleased to partner with RCF, a leading fertilizer company with proven expertise in the sector. This collaboration combines GAIL’s strengths in the natural gas value chain with RCF’s rich experience in fertilizer manufacturing and project execution. Further, this partnership between GAIL and RCF is aligned with the Government of India’s recently approved National Investment Policy for Urea-2026 (NIPU-2026) towards Atmanirbhar Bharat,” Gupta stated.
RCF CMD S. Shivakumar expressed that the project aims to address the increasing fertilizer demand in the country, while also reducing reliance on imports and fostering industrial growth in the Vidarbha area.
“Leveraging RCF’s extensive experience in fertilizer plant operations, project development and marketing, together with GAIL’s robust gas infrastructure and energy expertise, this partnership has the potential to create a world-class fertilizer facility,” he noted.
The two companies indicated that the proposed plant is expected to enhance domestic urea production capabilities, aligning with the government’s goal of achieving self-sufficiency in fertilizer production under the National Investment Policy for Urea-2026.
