Gail (India) and Rashtriya Chemicals and Fertilisers (RCF) have signed a memorandum of understanding to form a special purpose vehicle to develop a gas based fertiliser project in Maharashtra. The partners intend to jointly establish a urea production facility through the SPV to leverage combined strengths in the gas value chain and fertiliser manufacturing. The announcement followed a signing ceremony in which senior executives of both organisations formalised the collaboration.\n\nThe proposed urea plant is planned in the Vidarbha region adjacent to Gail's Mumbai–Nagpur–Jharsuguda Natural Gas Pipeline (MNJPL) to ensure feedstock connectivity and logistical efficiency. Its production capacity has been stated as one point two seven million tonnes per annum (1.27 mn t per annum), designed to service domestic fertiliser demand. Project proponents cited the site selection as aligned with objectives to promote industrial development within the region.\n\nThe MoU was executed by Sanjay Agarwal, executive director for business development and start ups at Gail, and Jyoti Patil, executive director for project corporate and co ordination at RCF, in the presence of Deepak Gupta, chairman and managing director of Gail, and S. Shivakumar, chairman and managing director of RCF. Additional attendees included R. K. Singhal, director for business development at Gail, and Nazhat J. Shaikh and Ritu Goswami from RCF on finance and technical functions respectively. The parties confirmed that the arrangement envisages shared responsibilities for project execution and subsequent operations.\n\nCompany leadership indicated that the initiative supports Gail's strategy to create long term value through natural gas utilisation and to contribute to national energy security, citing alignment with the National Investment Policy for Urea 2026. RCF leadership described the collaboration as an opportunity to reduce import dependence and to meet growing fertiliser requirements, while leveraging the partner's operational experience. Both organisations signalled intent to move from conceptualisation to implementation, aiming to deliver a world class fertiliser facility.