GAIL and RCF join hands to set up gas-based fertilizer plant in Maharashtra

GAIL (India) Limited and Rashtriya Chemicals and Fertilizers Limited (RCF) have signed a Memorandum of Understanding (MoU) to jointly establish a gas-based fertilizer project in Maharashtra through a Special Purpose Vehicle (SPV).

The proposed urea production facility, with a planned capacity of 1.27 million metric tonnes per annum (MMTPA), is expected to be set up in the Vidarbha region along GAIL’s Mumbai-Nagpur-Jharsuguda Natural Gas Pipeline (MNJPL).

Under the agreement, GAIL and RCF will work together to take the project from the conceptual stage through to implementation, combining their respective expertise in natural gas infrastructure and fertilizer manufacturing.

The MoU was signed by Sanjay Agarwal, Executive Director (Business Development & Start-up), GAIL, and Jyoti Patil, Executive Director (Project, Corporate & Coordination), RCF, in the presence of GAIL Chairman and Managing Director Deepak Gupta and RCF Chairman and Managing Director S Shivakumar.

Senior officials from both companies, including GAIL Director (Business Development) RK Singhal, RCF Director (Finance) Nazhat J Shaikh and RCF Director (Technical) Ritu Goswami, also attended the signing ceremony.

Speaking on the occasion, GAIL CMD Deepak Gupta said the proposed fertilizer project aligns with the company’s strategy of creating long-term value through the use of natural gas while contributing to India’s energy security objectives.

“We are pleased to partner with RCF, a leading fertilizer company with proven expertise in the sector. This collaboration combines GAIL’s strengths in the natural gas value chain with RCF’s rich experience in fertilizer manufacturing and project execution. Further, this partnership between GAIL and RCF is aligned with the Government of India’s recently approved National Investment Policy for Urea-2026 (NIPU-2026) towards Atmanirbhar Bharat,” Gupta said.

RCF CMD S. Shivakumar said the project is expected to help meet the country’s growing fertilizer demand while reducing import dependence and promoting industrial development in the Vidarbha region.

“Leveraging RCF’s extensive experience in fertilizer plant operations, project development and marketing, together with GAIL’s robust gas infrastructure and energy expertise, this partnership has the potential to create a world-class fertilizer facility,” he said.

The companies said the proposed project is expected to strengthen domestic urea production capacity and support the government’s objective of achieving greater self-reliance in fertilizer production under the National Investment Policy for Urea-2026.