GAIL and RCF partner on 1.27 million t/yr urea plant in Maharashtra under India’s new capacity push

GAIL (India) and Rashtriya Chemicals and Fertilizers (RCF) have signed a memorandum of understanding to build a 1.27 million metric ton per year gas-based urea plant in Maharashtra’s Vidarbha region, the companies said on July 29.

The facility will be developed through a special purpose vehicle and located along GAIL’s Mumbai–Nagpur–Jharsuguda Natural Gas Pipeline, giving it direct access to feedstock. The project is the first new urea plant to move forward under India’s recently approved National Investment Policy for Urea-2026 (NIPU-2026), which aims to add 10 million metric tons of domestic capacity through eight to nine new plants.

India currently imports roughly 30% of its urea needs. The NIPU-2026 policy, approved by the Union Cabinet in late July, targets a sharp reduction in import dependence by incentivizing domestic production and guaranteeing long-term gas supply to fertilizer producers.

GAIL CMD Deepak Gupta said the project aligns with the company’s strategy of creating value through natural gas utilization. RCF CMD S. Shivakumar said the facility is expected to promote industrial development in the Vidarbha region while helping meet growing fertilizer demand.

The MoU combines GAIL’s gas infrastructure expertise with RCF’s experience in fertilizer manufacturing. No cost estimate or construction timeline has been disclosed.

Source: World Fertilizer