Fertilizer
GAIL and KRIBHCO join hands to explore gas-based fertiliser project in Andhra Pradesh
The proposed plant will be strategically located along GAIL's Srikakulam-Angul Natural Gas Pipeline
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By ICN Bureau | November 13, 2026
In a major push to strengthen India's gas and fertiliser sectors, GAIL (India) Limited and Krishak Bharati Cooperative Limited (KRIBHCO) have joined hands to explore the setting up of a large-scale gas-based fertiliser plant in Andhra Pradesh.
The two companies have signed an MoU to examine the feasibility of establishing a urea manufacturing facility at Mulapeta in Srikakulam district, with a proposed production capacity of 1.27 million metric tonnes per annum (MMTPA).
The proposed plant will be strategically located along GAIL's Srikakulam-Angul Natural Gas Pipeline (SAPL), providing access to natural gas, a key feedstock for urea production. The project is envisaged to be implemented through a joint venture between the two companies.
The MoU was signed by Sanjay Agarwal, Executive Director (BD, Start-up & R&D), GAIL, and C.S. Azad, Executive Director (Technical), KRIBHCO, in the presence of KRIBHCO Chairman V. Sudhakar Chowdary, Managing Director S. S. Yadav and GAIL Director (Business Development) R. K. Singhal.
Highlighting the strategic importance of the proposed collaboration, KRIBHCO Chairman V. Sudhakar Chowdary 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."
GAIL Director (BD) R. K. Singhal said, “It represents a strategic integration of India's gas and fertiliser value chains and demonstrates GAIL’s commitment to supporting sustainable industrial and agricultural growth.”
The proposed project could strengthen the fertiliser manufacturing ecosystem in Andhra Pradesh while deepening the integration of the country's natural gas and agricultural sectors. Its location along GAIL's pipeline network is also expected to be a key consideration as the companies explore the project's implementation.
