The companies signed a pact to explore a ₹135 billion fertiliser project in Srikakulam district.
GAIL (India) Limited and Krishak Bharati Cooperative Limited (KRIBHCO) signed a Memorandum of Understanding (MoU) on Thursday to explore setting up a gas-based fertiliser project in Andhra Pradesh, according to reports by ANI and Business Standard.
The proposed urea production facility is planned for Mulapeta in the Srikakulam district. The plant is envisaged to have a capacity of 1.27 million metric tons per annum (MMTPA) along the Srikakulam Angul Natural Gas Pipeline (SAPL).
The project is estimated to cost approximately ₹135 billion ($1.6 billion). Business Standard reported that the companies signed the pact with the Andhra Pradesh Economic Development Board, and the state government will facilitate land, infrastructure and potential incentives.
The companies have agreed to implement the project through a joint venture mode. The facility could create 300-400 direct jobs and around 1,000 indirect jobs.
KRIBHCO Chairman V. Sudhakar Chowdary said the MoU marks the beginning of a strategic partnership. GAIL Director (Business Development) R.K.
Singhal said the move represents a strategic integration of India's gas and fertiliser value chains.
