GAIL and KRIBHCO Sign MoU for 1.27 MMTPA Gas-Based Fertilizer Plant in Andhra Pradesh

GAIL and KRIBHCO sign an MoU to explore a 1.27 MMTPA gas-based urea plant at Mulapeta, Andhra Pradesh, through a proposed joint venture.

GAIL (India) Limited and Krishak Bharati Cooperative Limited (KRIBHCO) have signed a Memorandum of Understanding (MoU) to explore the possibility of setting up a large gas-based fertilizer manufacturing project in Andhra Pradesh. The proposed project will have an annual urea production capacity of 1.27 million metric tonnes (MMTPA) and is expected to strengthen India’s domestic fertilizer manufacturing capabilities.

The proposed fertilizer plant will be located at Mulapeta in Srikakulam district of Andhra Pradesh, along GAIL’s Srikakulam-Angul Natural Gas Pipeline (SAPL).

The two companies have agreed to explore the implementation of the project through a joint venture (JV) model, bringing together GAIL’s expertise in the natural gas sector and KRIBHCO’s experience in fertilizer manufacturing.

GAIL-KRIBHCO MoU: Key Details

The MoU was formally signed by Shri Sanjay Agarwal, Executive Director (Business Development, Start-up & R&D), GAIL, and Shri C.S. Azad, Executive Director (Technical), KRIBHCO.

The signing ceremony was attended by Shri V. Sudhakar Chowdary, Chairman, KRIBHCO; Shri S.S. Yadav, Managing Director, KRIBHCO; and Shri R.K. Singhal, Director (Business Development), GAIL.

The proposed project represents a strategic collaboration between two major public-sector-linked organisations in India’s energy and fertilizer industries.

Proposed 1.27 Million Tonnes Urea Manufacturing Capacity

The proposed gas-based fertilizer facility is envisaged to have an annual production capacity of 1.27 million metric tonnes of urea.

The plant’s location along GAIL’s Srikakulam-Angul Natural Gas Pipeline is expected to provide an important infrastructure advantage by facilitating access to natural gas, a key feedstock for urea production.

Natural gas plays a crucial role in the fertilizer industry, particularly in the manufacture of ammonia and urea. A reliable gas supply is therefore essential for the efficient operation of large-scale fertilizer manufacturing facilities.

The proposed project could contribute to strengthening domestic urea production and supporting the availability of fertilizers for India’s agricultural sector.

GAIL-KRIBHCO Partnership to Strengthen Gas and Fertilizer Value Chains

The collaboration is aimed at integrating India’s natural gas infrastructure with its fertilizer manufacturing capabilities.

GAIL, India’s leading natural gas company, has a significant presence across the natural gas value chain, including transmission, marketing and infrastructure development.

KRIBHCO, meanwhile, has extensive experience in the cooperative fertilizer sector and fertilizer manufacturing.

The proposed joint venture will combine the strengths of both organisations to explore the development and implementation of the fertilizer project.

What GAIL and KRIBHCO Leadership Said

Speaking on the occasion, Shri V. Sudhakar Chowdary, Chairman of KRIBHCO, described the MoU as the beginning of a strategic partnership between the two organisations.

He said, “The signing of this MoU marks the beginning of a strategic partnership between GAIL and KRIBHCO. I am confident that KRIBHCO’s experience combined with GAIL’s leadership position in natural gas sector would bring value to the proposed project for successful implementation.”

Shri R.K. Singhal, Director (Business Development), GAIL, said the proposed collaboration represents a strategic integration of India’s gas and fertilizer value chains.

He added that the initiative demonstrates GAIL’s commitment to supporting sustainable industrial and agricultural growth.

Significance for India’s Fertilizer and Energy Sectors

The proposed fertilizer project could have wider implications for India’s energy and agricultural sectors.

1. Strengthening Domestic Fertilizer Production: The proposed 1.27 MMTPA capacity could add to India’s domestic urea manufacturing potential.

2. Better Utilisation of Natural Gas Infrastructure: Locating the plant along GAIL’s SAPL pipeline could support the utilisation of natural gas infrastructure for industrial development.

3. Supporting Agricultural Growth: Increased domestic fertilizer production could contribute to the availability of essential agricultural inputs.

4. Strengthening Energy-Fertilizer Integration: The partnership reflects the growing importance of integrating natural gas supply chains with fertilizer manufacturing.

5. Industrial Development in Andhra Pradesh: The proposed facility could create opportunities for industrial investment and associated economic activity in the Srikakulam region.