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

The proposed urea production facility, with a planned capacity of 1.27 Million Metric Tonnes Per Annum (MMTPA), is envisaged to be established in the Vidarbha region of Maharashtra along GAIL's Mumbai–Nagpur–Jharsuguda Natural Gas Pipeline (MNJPL).

To facilitate the implementation of the project, GAIL has entered a strategic partnership with RCF, with both organizations working collaboratively to take the project from conceptualization to successful implementation.

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

Senior management from both the companies, R.K. Singhal, Director (BD), GAIL, Nazhat J. Shaikh, Director (Finance), RCF and Ritu Goswami, Director (Technical), RCF, were present during the MoU signing ceremony.

Speaking on the occasion, Deepak Gupta, CMD, GAIL (India) Limited, said: “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. 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 & RCF is aligned with Government of India’s recently approved National Investment Policy for Urea-2026 (NIPU-2026) towards Atmanirbhar Bharat”

S. Shivakumar, C&MD, RCF stated that “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.”