Raipur, December 25, 2025: In a significant step toward strengthening agricultural infrastructure and promoting industrial development in the state, the Government of Chhattisgarh and GAIL (India) Limited have signed a Memorandum of Understanding (MoU) for the development of a greenfield gas-based fertilizer project in Chhattisgarh.
The non-binding MoU was formalized today in the presence of the Hon’ble Chief Minister of Chhattisgarh, Shri Vishnu Deo Sai, highlighting the state government’s commitment to fostering investments in critical sectors such as fertilizers and energy. The agreement was signed by Shri Rajat Kumar, Secretary (Commerce & Industries), Government of Chhattisgarh, and Shri Rajeev Kumar Singhal, Director (Business Development), GAIL (India) Limited.
Under the terms of the MoU, GAIL will undertake comprehensive techno-economic feasibility studies to evaluate the establishment of a large-scale urea manufacturing facility in the state. The proposed plant will have an annual capacity of 12.7 Lakh Metric Tonnes (LMT) and is planned to be strategically located along GAIL’s Mumbai–Nagpur–Jharsuguda Natural Gas Pipeline (MNJPL) corridor. The proximity to this major pipeline is expected to ensure reliable access to natural gas, a key input for gas-based fertilizer production, while also enhancing the overall viability of the project.
Following the completion of the techno-economic assessment, GAIL will take an informed investment decision regarding the setting up of the fertilizer plant. If implemented, the project is expected to play a crucial role in strengthening domestic fertilizer production, reducing dependence on imports, and ensuring timely availability of urea to farmers, particularly in central and eastern India.
The Government of Chhattisgarh has assured full support for the proposed project and has committed to facilitating its development at every stage. This includes assistance in conducting feasibility studies, identification and allocation of suitable land parcels, coordination with relevant State and Central government departments, facilitation of statutory clearances and approvals, and support in developing enabling infrastructure required for project execution.
State officials noted that the proposed fertilizer plant aligns with Chhattisgarh’s broader vision of industrial diversification, value addition, and sustainable economic growth. The project is also expected to generate significant employment opportunities, both during the construction phase and in long-term operations, thereby contributing to regional development.
Speaking on the occasion, representatives from both the state government and GAIL emphasized the importance of collaborative efforts between public sector enterprises and state administrations to accelerate infrastructure development. The partnership reflects a shared focus on strengthening India’s fertilizer security while leveraging existing energy infrastructure for industrial growth.
Once operational, the gas-based fertilizer project could emerge as a key industrial anchor in Chhattisgarh, supporting the agricultural sector and reinforcing the state’s position as an emerging hub for energy-linked industries. The signing of the MoU marks an important first step in this direction, setting the foundation for detailed evaluations and future investments.
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