GAIL and KRIBHCO to explore Rs 13,500 crore urea plant in Andhra Pradesh
The proposed 1.27 million metric tonnes per annum facility at Mulapeta could create approximately 1,300 jobs.
GAIL (India) Limited and Krishak Bharati Cooperative Limited (KRIBHCO) have entered into an agreement with the Andhra Pradesh Economic Development Board to study the establishment of a urea manufacturing unit in Andhra Pradesh, according to reports by The Economic Times and Moneycontrol.
The project, estimated to cost approximately Rs 13,500 crore ($1.6 billion), involves setting up a 1.27 million metric tonnes per annum (MMTPA) plant at Mulapeta in the Srikakulam district. The investment is expected to be made in phases.
The facility is projected to generate around 1,300 jobs, consisting of 300-400 direct positions and about 1,000 indirect roles. The state government will support the project by providing land at a nominal cost and essential infrastructure, including electricity, water, roads, and railway connectivity.
According to a memorandum of understanding seen by Moneycontrol, the government may also offer incentives such as a fixed capital subsidy, an interest-free loan for capital expenditure, and a 100 per cent refund of state GST.
This development occurs as Andhra Pradesh sees several large-scale investments, including a planned $15 billion AI hub by Google and a $2 billion manufacturing plant by the Indian unit of Kia Corp. Additionally, Reliance Industries has proposed an $11 billion investment in data centre capacity and unveiled plans for a $4.59 billion underground coal gasification complex.