GAIL, RCF partner to set up gas-based fertilizer plant in Vidarbha

GAIL and RCF have signed an MoU to jointly build a gas-based fertilizer project in Maharashtra's Vidarbha. The plant will have a urea production capacity of 1.27 MMTPA and aims to reduce India's dependence on fertilizer imports.

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 with a proposed urea production capacity of 1.27 million metric tonnes per annum (MMTPA) in Maharashtra's Vidarbha region. The project will be developed through a Special Purpose Vehicle (SPV) and is planned to be located along GAIL's Mumbai-Nagpur-Jharsuguda Natural Gas Pipeline (MNJPL).

The partnership aims to combine GAIL's natural gas infrastructure and energy expertise with RCF's experience in fertilizer manufacturing and project execution. The companies will work together to take the proposed project from conceptualisation to implementation. The facility is expected to contribute to meeting India's growing fertilizer requirements while reducing dependence on imports.

Strategic Partnership for National Goals

GAIL Chairman and Managing Director Deepak Gupta said the proposed project aligns with the company's strategy of creating long-term value through natural gas utilisation and supporting India's energy security objectives. "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," Gupta said.

He added that the partnership is also aligned with the government's recently approved National Investment Policy for Urea-2026 (NIPU-2026) and the broader objective of building an Atmanirbhar Bharat.

Combining Strengths for a World-Class Facility

RCF Chairman and Managing Director S. Shivakumar said the company was "delighted to collaborate with GAIL" for the development of the fertilizer project, which is expected to support domestic fertilizer demand and promote industrial development in Vidarbha. "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," Shivakumar said.

He added that RCF's experience in fertilizer plant operations, project development and marketing, combined with GAIL's gas infrastructure and energy capabilities, could help create a "world-class fertilizer facility."

Strengthening Domestic Production

The MoU was signed by GAIL Executive Director (BD & Start-up) Sanjay Agarwal and RCF Executive Director (Project, Corporate & Coordination) Jyoti Patil in the presence of senior officials from both companies. The proposed investment is expected to strengthen Maharashtra's fertilizer manufacturing ecosystem while supporting the government's efforts to enhance domestic urea production and reduce the country's reliance on imported fertilizers.

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