GAIL Explores New Gas-Based Urea Manufacturing Plant in Chhattisgarh

26-Dec-2025

GAIL Update Gas-Based Urea Manufacturing Plant

Key Takeaways:

GAIL has entered into a preliminary agreement with the Chhattisgarh government to examine a new fertilizer project.
The proposal involves a greenfield, gas-based urea manufacturing plant with a planned capacity of 12.7 lakh metric tons per year.
The project location is being evaluated along GAIL’s Mumbai–Nagpur–Jharsuguda natural gas pipeline route.
The state government has committed to support the project through land facilitation, approvals, and infrastructure assistance.

GAIL India Limited has kick-started talks with the Government of Chhattisgarh to see if a massive gas-based fertilizer unit can be set up in the state. This is a significant beginning towards making a new investment in the manufacturing sector, as a non-binding memorandum of understanding has been signed.

Proposed Greenfield Fertilizer Facility:

Under the agreement, GAIL will carry out detailed techno-economic assessments for a urea manufacturing plant with an annual capacity of 12.7 lakh metric tons. The proposed facility is expected to be positioned along the Mumbai–Nagpur–Jharsuguda Natural Gas Pipeline corridor, allowing the project to tap into GAIL’s existing gas transmission network.

The studies will examine technical design, commercial viability, and overall project economics. GAIL has stated that a final investment decision will be taken only after the evaluation process is completed.

Collaboration with the Chhattisgarh Government:

The memorandum of understanding was signed in the presence of Chhattisgarh Chief Minister Vishnu Deo Sai. The state was represented by Rajat Kumar, Secretary for Commerce and Industries, while GAIL was represented by Rajeev Kumar Singhal, Director for Business Development.

As part of the arrangement, the Chhattisgarh government has agreed to extend assistance throughout the project lifecycle. This includes support during feasibility studies, identification and allocation of suitable land, coordination with state and central authorities, and facilitation of statutory clearances.

Infrastructure and Regulatory Support:

Beyond approvals, the state government will also help enable the infrastructure required to implement the project, should it move forward. This support is intended to reduce execution hurdles and create a smoother pathway for setting up the proposed manufacturing facility.

If developed, the project would add new fertilizer production capacity in central India and align with broader efforts to enhance domestic manufacturing and reduce reliance on imports. The next phase will depend on the outcome of GAIL’s technical and financial studies.

About Author:

Pritam Choudhury, Chemicals Industry Analyst

Pritam Choudhury has 4 years of experience in the chemicals and materials industry, focusing on market analysis, production processes, and investment opportunities in new materials. His expertise spans emerging chemical technologies, polymers, and sustainable manufacturing practices, helping clients navigate the changing landscape of chemical manufacturing and material innovation.

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