GAIL signs MoU with Chhattisgarh for 12.7 lakh tonne gas-based urea project

State-run GAIL (India) has signed a non-binding MoU with the Chhattisgarh government to explore a greenfield gas-based urea fertiliser project.
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State-run GAIL (India) said on Tuesday that it has signed a memorandum of understanding (MoU) with the Chhattisgarh government to set up a greenfield gas-based fertiliser project in the state.

A non-binding Memorandum of Understanding (MoU) for this was signed in the presence of Chhattisgarh Chief Minister Vishnu Deo Sai. The MoU was signed by Chhattisgarh Secretary (Commerce & Industries), Rajat Kumar, and the Director (Business Development) at GAIL.

As per the MoU, the Maharatna company will undertake detailed techno-economic studies for setting up a urea manufacturing plant with a capacity of 12.7 lakh tonnes (LT), to be strategically located along GAIL’s Mumbai–Nagpur–Jharsuguda Natural Gas Pipeline (MNJPL) corridor.

Based on the techno-economic evaluation, investment decisions will be taken to set up GAIL’s fertiliser project.

State support

The Government of Chhattisgarh will provide facilitation across all stages of the project, including support for feasibility studies, identification and allocation of suitable land parcels, coordination with State and Central authorities, facilitation for statutory approvals and enabling infrastructure necessary for project implementation.

The country’s largest gas utility has significantly supported India’s development of various downstream natural gas-based industries. It now seeks to contribute to the fertiliser sector to strengthen domestic fertiliser production.

The Government of Chhattisgarh is actively promoting industrial growth through investor-friendly policies, infrastructure development, and ease-of-doing-business initiatives.

Published on December 23, 2025