Chhattisgarh Govt Signs MoU With GAIL for Greenfield Gas Based Fertiliser Project

26 Dec 2025 , 10:33 AM

The Government of Chhattisgarh on December 23 signed a memorandum of understanding with GAIL India Ltd to explore the development of a greenfield gas based fertiliser project in the state.

Under the agreement, GAIL will undertake detailed techno economic feasibility studies for setting up a urea manufacturing plant with a proposed capacity of 12.7 lakh metric tonnes per annum.

The proposed facility is planned to be strategically located along GAIL’s Mumbai Nagpur Jharsuguda natural gas pipeline corridor to ensure reliable access to feedstock and logistics efficiency.

Based on the findings of the feasibility and techno economic assessment, GAIL will take a final investment decision on the project, the company said in an exchange filing. The company clarified that the memorandum of understanding is non binding in nature and does not commit either party to a final investment at this stage.

The MoU was signed in the presence of Chhattisgarh Chief Minister Vishnu Deo Sai, highlighting the state government’s focus on attracting large scale industrial investments. The agreement was formalised by Rajat Kumar, Secretary Commerce and Industries, Government of Chhattisgarh, and Rajeev Kumar Singhal, Director Business Development at GAIL.

As per the exchange filing, the Chhattisgarh government will extend support across all phases of the project, including assistance in feasibility studies and coordination during the planning stage. The state government will also support the identification and allocation of suitable land for the project and facilitate coordination with state and central government authorities.

In addition, the government will help in obtaining statutory and regulatory approvals and in the development of enabling infrastructure required for the implementation of the proposed fertiliser plant.

The proposed project aligns with efforts to strengthen domestic fertiliser production capacity while leveraging existing natural gas infrastructure to support sustainable industrial development.

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