GAIL (India) Limited and Krishak Bharati Cooperative Limited (KRIBHCO) have signed a Memorandum of Understanding (MoU) to explore the establishment of a gas-based fertiliser project at Mulapeta in Andhra Pradesh’s Srikakulam district. The proposed facility will have an annual urea production capacity of 1.27 million metric tonnes (MMTPA) and is envisaged to be developed through a joint venture (JV).
The MoU was signed in Visakhapatnam on November 12, 2026, marking the beginning of a proposed strategic partnership between the two organisations in the fertiliser sector.
Sanjay Agarwal, Executive Director (BD, Start-up & R&D), GAIL, and C.S. Azad, Executive Director (Technical), KRIBHCO, formally signed the agreement. The ceremony was attended by V. Sudhakar Chowdary, Chairman, KRIBHCO; S.S. Yadav, Managing Director, KRIBHCO; and R.K. Singhal, Director (Business Development), GAIL.
Proposed Urea Plant to Have 1.27 MMTPA Capacity
The proposed gas-based fertiliser facility is planned at Mulapeta in Srikakulam district, along GAIL’s Srikakulam–Angul Natural Gas Pipeline (SAPL). Its location along the pipeline is expected to provide access to the natural gas infrastructure required for the project.
GAIL and KRIBHCO have agreed to explore the implementation of the project through a joint venture model. The proposed partnership will bring together GAIL’s capabilities in the natural gas sector and KRIBHCO’s experience in fertiliser manufacturing.
The project is aimed at exploring an integrated gas-based fertiliser manufacturing facility with an annual urea production capacity of 1.27 MMTPA.
GAIL – KRIBHCO Partnership to Integrate Gas and Fertiliser Sectors
Speaking on the occasion, KRIBHCO Chairman V. Sudhakar Chowdary said the MoU marks the beginning of a strategic partnership between GAIL and KRIBHCO. He expressed confidence that KRIBHCO’s experience, combined with GAIL’s leadership in the natural gas sector, would add value to the proposed project and support its successful implementation.
GAIL Director (Business Development) R.K. Singhal described the initiative as a strategic integration of India’s gas and fertiliser value chains. He also highlighted GAIL’s commitment to supporting sustainable industrial and agricultural growth.
Strengthening Domestic Fertiliser Manufacturing
The proposed project is expected to explore additional domestic urea manufacturing capacity by integrating natural gas infrastructure with fertiliser production capabilities.
The planned location at Mulapeta, along the Srikakulam–Angul Natural Gas Pipeline, is an important part of the project proposal. The joint venture model would enable both organisations to combine their expertise in the energy and fertiliser sectors.
The MoU marks an initial step towards exploring the 1.27 MMTPA gas-based urea project in Andhra Pradesh. If taken forward, the facility could contribute to domestic fertiliser production and strengthen the integration of India’s natural gas and agricultural value chains.
