GAIL (India) Limited signs MoU for 1.27 MMTPA urea plant

GAIL signed a 12 November 2026 memorandum of understanding with Krishak Bharati Cooperative Limited (KRIBHCO) to explore a joint-venture gas-based urea plant at Mulapeta, Andhra Pradesh, with envisaged capacity of 1.27 MMTPA (million metric tonnes per annum) alongside GAIL's Srikakulam Angul Natural Gas Pipeline.

What did GAIL and KRIBHCO sign on 12 November 2026?

GAIL and KRIBHCO signed a memorandum of understanding (MoU) on 12 November 2026 to explore a gas-based fertiliser project in Andhra Pradesh. The announced project includes an envisaged urea-production capacity of 1.27 MMTPA, but the filing describes the arrangement as an opportunity under exploration rather than a completed investment or operating facility.

The MoU was signed in Visakhapatnam by Sanjay Agarwal, GAIL's Executive Director for Business Development, Start-up and Research and Development, and C. S. Azad, KRIBHCO's Executive Director for Technical matters. KRIBHCO Chairman V. Sudhakar Chowdary, KRIBHCO Managing Director S. S. Yadav and GAIL Director for Business Development R. K. Singhal attended the 12 November event.

The disclosed change on 12 November 2026 was the formalisation of cooperation between GAIL and KRIBHCO for the proposed 1.27 MMTPA facility. The filing does not disclose a final investment decision, construction award, commissioning date or initial commercial urea output.

Where is the proposed GAIL and KRIBHCO urea plant located?

GAIL and KRIBHCO envisage locating the 1.27 MMTPA urea facility at Mulapeta in Andhra Pradesh's Srikakulam district. The proposed site is along GAIL's Srikakulam Angul Natural Gas Pipeline, or SAPL, which is the specific natural-gas infrastructure connection identified in the 12 November announcement.

The filing identifies Mulapeta, Srikakulam district and Andhra Pradesh, but does not state the plant's land area, layout, pipeline distance from the site or number of production units. It also provides no construction timetable for the gas-based project, leaving the location and SAPL connection as the principal physical details disclosed.

The project links two stated elements: GAIL's SAPL network and a proposed 1.27 MMTPA urea-production facility. While the release establishes that the plant would be situated along the pipeline, it does not disclose gas volume, pipeline capacity, supply tenure or commercial terms for the proposed facility.

How would the GAIL and KRIBHCO joint venture be structured?

GAIL and KRIBHCO agreed to join hands to implement the proposed 1.27 MMTPA project through a joint-venture mode. This is the only implementation mechanism specified in the 12 November 2026 filing for the Mulapeta urea facility.

The announcement does not disclose the prospective venture's legal name, ownership split, capital contribution, board composition or whether a project company has been incorporated. It also does not state the project's capital cost, debt plan, funding source or any allocation of development responsibilities between GAIL and KRIBHCO.

GAIL's disclosed connection to the project is its SAPL natural-gas pipeline, while KRIBHCO is the other MoU signatory for the proposed fertiliser project. The filing therefore identifies the two parties and the joint-venture mechanism, but does not provide a binding operational agreement or gas-supply arrangement for the 1.27 MMTPA plant.

What is the scope and current status of the urea project?

The project scope disclosed by GAIL is a gas-based fertiliser facility with envisaged urea capacity of 1.27 MMTPA. Urea is the only fertiliser product named in the 12 November release, and 1.27 MMTPA is the only production-capacity measure provided.

No sales estimate, urea price assumption, revenue forecast, operating-cost figure or profitability target was included for the proposed plant. The filing also contains no comparison with an existing GAIL or KRIBHCO fertiliser facility, so it does not quantify the proposed project's potential financial contribution.

The MoU records an intention to explore the opportunity and pursue implementation through a joint venture. GAIL did not disclose regulatory approvals, land arrangements, financing, gas allocation, engineering contracts or a commissioning schedule for the proposed 1.27 MMTPA facility.

What did GAIL and KRIBHCO management say about the MoU?

KRIBHCO Chairman V. Sudhakar Chowdary said the 12 November MoU marked the beginning of a strategic partnership between GAIL and KRIBHCO. He said KRIBHCO's experience combined with GAIL's position in the natural-gas sector could bring value to the proposed project for successful implementation.

GAIL Director for Business Development R. K. Singhal said the MoU represented a strategic integration of India's gas and fertiliser value chains and demonstrated GAIL's commitment to industrial and agricultural growth. This was management's characterisation of the 1.27 MMTPA proposal, not a forecast of project output, urea availability or pipeline throughput.

Neither management statement set a target for construction start, commissioning, annual utilisation, capital expenditure or returns from the proposed joint venture. The disclosed management comments explain the intended link between gas infrastructure and fertiliser production, while the project remains at the exploration stage described in the MoU.

Conclusion

The 12 November 2026 MoU brings GAIL and KRIBHCO together to explore a 1.27 MMTPA gas-based urea plant at Mulapeta in Srikakulam district, alongside GAIL's SAPL network. The main disclosed outcome is a proposed joint-venture route connecting gas infrastructure with fertiliser production, rather than an approved or operating plant.

The next stated plan is implementation through the joint-venture mode agreed by GAIL and KRIBHCO. Investors can watch for later disclosures on the venture's ownership, gas-supply terms, approvals, funding, construction programme and commissioning timetable, none of which were specified in the 12 November 2026 release.