Visakhapatnam, 12 November (H.S.): GAIL (India) Limited and Krishak Bharati Cooperative Limited (KRIBHCO) on Thursday signed a Memorandum of Understanding (MoU) to explore the possibility of setting up a 1.27-million-metric-tonne-per-annum (MMTPA) gas-based urea manufacturing plant at Mulapeta in Andhra Pradesh's Srikakulam district.

The proposed facility is planned along GAIL's Srikakulam-Angul Natural Gas Pipeline (SAPL). The two companies have agreed to explore implementing the project through a joint venture.

The MoU was signed by Sanjay Agarwal, Executive Director (Business Development, Start-up and R&D) of GAIL, and C.S. Azad, Executive Director (Technical) of KRIBHCO, in the presence of KRIBHCO Chairman V. Sudhakar Chowdary, Managing Director S.S. Yadav and GAIL Director (Business Development) R.K. Singhal.

Chowdary said the partnership would combine KRIBHCO's experience in the fertiliser sector with GAIL's position in the natural gas industry, adding that he was confident of its contribution to the proposed project.

Singhal said the initiative represented an integration of India's gas and fertiliser value chains and reflected GAIL's commitment to supporting industrial and agricultural growth.

The MoU marks an initial step towards examining the proposed facility. The project is yet to move beyond the exploration stage, and the signing does not amount to final approval or commencement of construction.

Hindusthan Samachar / Indrani Sarkar