Strategic Initiative Details

Project Nature: GAIL (India) Limited and Rashtriya Chemicals and Fertilizers Limited (RCF) have signed a Memorandum of Understanding (MoU) to jointly establish a gas-based fertilizer project in Maharashtra through a Special Purpose Vehicle (SPV).

Project Capacity: The proposed urea production facility will have a planned capacity of 1.27 Million Metric Tonnes Per Annum (MMTPA).

Project Location: The facility is envisaged to be established in the Vidarbha region of Maharashtra along GAIL's Mumbai–Nagpur–Jharsuguda Natural Gas Pipeline (MNJPL).

Implementation Structure: Both organizations will work collaboratively to take the project from conceptualization to successful implementation through the SPV structure.

Management Commentary

Shri Deepak Gupta, CMD, GAIL (India) Limited: "The proposed fertilizer project aligns with GAIL's strategy of creating long-term value through natural gas utilization and contributing to India's energy security objectives. 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 & RCF is aligned with Government of India's recently approved National Investment Policy for Urea-2026 (NIPU-2026) towards Atmanirbhar Bharat."

Shri S. Shivakumar, C&MD, RCF: "RCF is delighted to collaborate with GAIL for the development of this important gas-based fertilizer project in Maharashtra. The proposed project is expected to contribute significantly towards meeting the growing fertilizer demand in the country, reducing import dependence and promoting industrial development in the Vidarbha region of Maharashtra. 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."

Signing Ceremony Details

The MoU was signed by Shri Sanjay Agarwal, ED (BD & Start-up) of GAIL and Ms. Jyoti Patil, Executive Director (Project, Corporate & Co-ordination) of RCF, in the presence of Shri Deepak Gupta, CMD, GAIL and Shri S. Shivakumar, CMD, RCF.

Senior management from both companies were present during the MoU signing ceremony, including:

  • Shri R.K. Singhal, Director (BD), GAIL
  • Ms. Nazhat J. Shaikh, Director (Finance), RCF
  • Ms. Ritu Goswami, Director (Technical), RCF

Strategic Objectives

  • Alignment with National Investment Policy for Urea-2026 (NIPU-2026)
  • Contribution to India's energy security objectives
  • Reduction of import dependence for fertilizers
  • Promotion of industrial development in the Vidarbha region
  • Creation of long-term value through natural gas utilization

Expected Benefits

  • Meeting growing fertilizer demand in the country
  • Combining GAIL's gas infrastructure expertise with RCF's fertilizer manufacturing experience
  • Potential creation of a world-class fertilizer facility
  • Support for Atmanirbhar Bharat initiative