Chhattisgarh, GAIL Sign MoU for Gas-Based Fertiliser Plant

25 Dec 2025 CW Team

The Government of Chhattisgarh on Tuesday signed a memorandum of understanding with GAIL (India) Ltd to explore the development of a greenfield gas-based fertiliser project in the state. Under the agreement, GAIL will undertake detailed techno-economic feasibility studies for setting up a urea manufacturing plant with a proposed capacity of 1.27 million tonnes per annum. The facility is planned to be strategically located along GAIL’s Mumbai–Nagpur–Jharsuguda natural gas pipeline corridor.

According to an exchange filing, the final investment decision on the project will be taken by GAIL after evaluating the outcome of the feasibility and techno-economic assessments. The MoU is non-binding in nature and is intended to assess the project’s viability before any capital commitment is made.

The agreement was signed in the presence of Chhattisgarh Chief Minister Vishnu Deo Sai by Rajat Kumar, Secretary (Commerce and Industries), Government of Chhattisgarh, and Rajeev Kumar Singhal, Director (Business Development), GAIL. The state government has committed to supporting the project at all stages, including assistance with feasibility studies, identification and allocation of suitable land, coordination with state and central authorities, facilitation of statutory approvals, and development of enabling infrastructure required for implementation.

Shares of GAIL (India) Ltd ended marginally higher on Tuesday, December 23, rising by 0.12 per cent.

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