INDIA —GAIL (India) Limited and Krishak Bharati Cooperative Limited (KRIBHCO) have entered into a Memorandum of Understanding (MoU) with the Andhra Pradesh Economic Development Board (APEDB) to evaluate the establishment of a large-scale gas-based urea manufacturing facility in Andhra Pradesh. The proposed plant is envisaged at Mulapeta in Srikakulam district, with an annual production capacity of 1.27 million metric tonnes. The agreement was signed during the 31st CII Partnership Summit 2026 in the presence of Andhra Pradesh Chief Minister N. Chandra Babu Naidu.
The proposed manufacturing site will be situated along GAIL's Srikakulam-Angul Natural Gas Pipeline (SAPL), providing a potential connection to the natural gas infrastructure required for fertilizer production. The collaboration brings together GAIL's expertise in natural gas transportation and infrastructure with KRIBHCO's established capabilities in fertilizer manufacturing. APEDB's participation adds the state government's investment facilitation role to the proposed industrial development.
The initiative is relevant to India's domestic fertilizer manufacturing industry, which depends on reliable feedstock availability and large-scale industrial infrastructure. Urea is a key agricultural input, making domestic production capacity important for fertilizer supply chains and the wider farming economy. A facility of the proposed scale could strengthen regional manufacturing capabilities and contribute to efforts to reduce exposure to imported fertilizer supplies, subject to the project's eventual implementation.
For the natural gas sector, the development represents a potential industrial demand source along GAIL's pipeline network. Greater utilization of pipeline infrastructure for fertilizer manufacturing could strengthen the commercial relationship between gas suppliers and industrial consumers. The proposed location also places the project within Andhra Pradesh's broader industrial development landscape, with potential implications for regional supply chains, logistics providers and associated industrial services.
The agreement remains at the exploratory stage and does not constitute confirmation that construction will commence. GAIL and KRIBHCO are examining the opportunity to advance the facility, while the MoU establishes a framework for cooperation among the participating organizations. Project investment requirements, financing arrangements, construction schedules and commissioning timelines have not been specified in the announcement. These factors will be important in determining the project's commercial feasibility and execution prospects.
GAIL is an Indian public-sector energy company principally engaged in natural gas transmission, marketing, processing and related infrastructure operations. KRIBHCO is a major fertilizer cooperative involved in the production and distribution of agricultural nutrients. Their proposed collaboration combines expertise across the gas and fertilizer value chains, while APEDB represents Andhra Pradesh's institutional framework for facilitating industrial investment and economic development.
