GAIL, RCF Partner for Gas-Based Fertilizer Plant in Maharashtra

GAIL India and Rashtriya Chemicals and Fertilizers (RCF) have signed an MoU to jointly develop a 1.27 million metric tonnes per annum (MMTPA) gas-based urea plant in Maharashtra's Vidarbha region. The project aims to strengthen domestic fertiliser production, reduce import dependence, and support India's self-reliance goals.

GAIL India and Rashtriya Chemicals and Fertilizers Limited (RCF) have signed a Memorandum of Understanding (MoU) to set up a 1.27 million metric tonnes per annum (MMTPA) urea plant in Vidarbha region of Maharashtra using gas. The project will be executed by a Special Purpose Vehicle (SPV) and is likely to increase India's domestic production capability to produce fertilizers and also cut down on its reliance on imported urea.

The proposed plant will be built on the lines of the proposed Mumbai-Nagpur-Jharsuguda Natural Gas Pipeline (MNJPL) so that the plant can be safely supplied with natural gas, the main feedstock for production of urea. This project is aligned with the National Investment Policy for Urea-2026 (NIPU-2026) and in support of the government's vision of promoting domestic manufacturing in the context of Atmanirbhar Bharat initiative.

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The partnership brings together GAIL's knowledge and experience of natural gas transmission and energy infrastructure with RCF's deep knowledge and experience of fertiliser manufacturing and plant operations. The public sector enterprises will collaborate throughout the project life cycle from planning, design, construction and commissioning of the proposed facility.

The new plant is expected to play a significant role in meeting India's growing demand for urea, a key input for agricultural production. Increasing domestic manufacturing capacity is expected to reduce reliance on imports, strengthen fertiliser security, and improve the long-term sustainability of the country's agricultural supply chain. The project is also anticipated to stimulate industrial development and generate employment opportunities in the Vidarbha region.

The proposed investment reflects the government's continued emphasis on expanding gas-based fertiliser production through modern and energy-efficient technologies. The availability of pipeline infrastructure is expected to improve operational efficiency while supporting cleaner and more reliable fertiliser manufacturing compared to alternative feedstocks.

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The GAIL-RCF partnership marks another step in strengthening India's fertiliser ecosystem through collaboration between leading public sector enterprises. By leveraging natural gas infrastructure and manufacturing expertise, the project is expected to enhance domestic urea production, support regional economic development, and contribute to India's long-term food and fertiliser security objectives.