Visakhapatnam: GAIL (India) Limited and Krishak Bharati Cooperative Limited (KRIBHCO) have signed a Memorandum of Understanding (MoU) on Thursday in Visakhapatnam. The initiative would examine the development of the of a gas-based fertiliser project in Andhra Pradesh, which will mark a significant step towards strengthening India's domestic fertiliser production capacity.
The MoU was formally signed by Sanjay Agarwal, ED (BD, Start-up & R&D), GAIL and C.S.Azad, Executive Director (Technical), KRIBHCO, in the presence of V Sudhakar Chowdary, Chairman, KRIBHCO, S.S. Yadav, Managing Director, KRIBHCO and R.K.Singhal, Director (Business Development), GAIL.
The proposed urea manufacturing facility is located near Mulapeta in the Srikakulam district, along GAIL's Srikakulam-Angul Natural Gas Pipeline (SAPL), and is expected to have an annual production capacity of 1.27 million metric tonnes (MMTPA). GAIL and KRIBHCO have agreed to join hands for implementation of the project through Joint Venture mode, combining GAIL's expertise in the natural gas sector with KRIBHCO's experience in fertiliser manufacturing.
According to KRIBHCO Chairman V. Sudhakar Chowdary, the MoU symbolizes the beginning of the strategic alliance between two organisations, “KRIBHCO’s experience combined with GAIL’s leadership position in natural gas sector would bring value to the proposed project for successful implementation."
On the other hand, R.K. Singhal, Director (BD), GAIL, stated that, “It represents a strategic integration of India's gas and fertiliser value chains and demonstrates GAIL’s commitment to supporting sustainable industrial and agricultural growth.”
Overall, the proposed project is expected to contribute to India's larger goal of achieving fertiliser self-sufficiency and strengthen domestic urea production capacity and improve fertiliser availability.
BI Bureau
