GAIL, Chhattisgarh Govt Sign Pact for Gas-Based Fertilizer Plant

• Chhattisgarh Government partners with GAIL to develop a greenfield gas-based fertilizer project
• The plant will be located along GAIL’s Mumbai–Nagpur–Jharsuguda Natural Gas Pipeline
• Chhattisgarh will provide full support, including feasibility studies, land allocation, regulatory clearances, and infrastructure development

The Chief Minister of Chhattisgarh, Mr. Vishnu Deo Sai, witnessed the signing of a Memorandum of Understanding (MoU) by the Secretary of Commerce and Industry, Rajat Kumar with the Director of Business Development for GAIL (India) Ltd., Rajeev Kumar Singhal.

This MoU is a non-binding agreement that GAIL will conduct complete techno-economic studies to develop a urea plant with an estimated capacity of 12.70 LMT on a greenfield site in the State of Chhattisgarh. The urea plant will be located strategically along GAIL’s MNJPL corridor and hence will have easy access to natural gas and enable efficient logistics for the products.

GAIL will use the results from these studies to guide its investment decisions in regard to the urea manufacturing facility. After completion of this facility, urea to be produced there will reduce reliance on imported urea and enhance India's ability to manufacture urea; thus contributing to job creation and economic growth in Chhattisgarh.

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Furthermore, the Chhattisgarh government has agreed to assist GAIL with various aspects of the project such as conducting feasibility studies, allocating land, coordinating with federal and state agency officials regarding regulatory approvals and developing new infrastructure.

In addition to significantly enhancing the capacity of the fertilizer manufacturing sector in India, this partnership between GAIL and Chhattisgarh will also create a competitive advantage as it will utilize GAIL’s existing gas pipeline network to effectively utilize energy, satisfy growing demand for domestic urea, and provide new employment opportunities while creating regional economic development.