KRIBHCO, GAIL and APEDB Join Hands to Explore 1.27 MTPA Urea Plant in Andhra Pradesh

Visakhapatnam: Krishak Bharati Cooperative Limited (KRIBHCO), GAIL (India) Limited and the Andhra Pradesh Economic Development Board (APEDB) have signed a Memorandum of Understanding (MoU) to explore the establishment of a gas-based urea manufacturing facility in Andhra Pradesh, marking a step towards expanding India's domestic fertiliser production capacity.

The agreement was signed on November 12, 2026, during the 31st CII Partnership Summit 2026 in the presence of Andhra Pradesh Chief Minister N. Chandrababu Naidu.

The proposed fertiliser plant is envisaged to have an annual production capacity of 1.27 million metric tonnes (MMTPA) and is planned at Mulapeta in Srikakulam district. The location is along GAIL's Srikakulam–Angul Natural Gas Pipeline (SAPL), which is expected to provide the gas connectivity required for the proposed facility.

The initiative brings together KRIBHCO's experience in fertiliser manufacturing, GAIL's natural gas infrastructure and expertise, and APEDB's role in facilitating industrial investments in the state.

The MoU was formally signed by C. S. Azad, Executive Director (Technical), KRIBHCO; Sanjay Agarwal, Executive Director (Business Development, Start-up & R&D), GAIL; and Sagili Shan Mohan, IAS, Chief Executive Officer, APEDB.

The signing ceremony was attended by V. Sudhakar Chowdary, Chairman, KRIBHCO; S. S. Yadav, Managing Director, KRIBHCO; and R. K. Singhal, Director (Business Development), GAIL.

The proposed collaboration provides a framework for the three organisations to explore the project's feasibility and development possibilities.

For KRIBHCO, the proposed project represents an opportunity to explore additional domestic urea manufacturing capacity and contribute to meeting India's growing agricultural fertiliser requirements.

Urea remains one of the most widely used nitrogenous fertilisers in Indian agriculture. Expanding domestic production capacity is an important part of the country's broader efforts to strengthen fertiliser availability and reduce exposure to international supply disruptions.

The proposed facility, with a planned capacity of 1.27 million tonnes annually, could become a significant addition to India's fertiliser manufacturing landscape if the project moves forward.

The proposed location at Mulapeta in Srikakulam district, along GAIL's natural gas pipeline, is a key feature of the planned project.

The partnership also reflects Andhra Pradesh's efforts to attract investments in strategic industrial sectors, including fertilisers and energy.

By combining natural gas infrastructure with KRIBHCO's fertiliser sector experience, the proposed project aims to explore opportunities for strengthening industrial development and supporting the agricultural input supply chain.

The MoU marks an initial step towards evaluating the proposed facility. Further progress will depend on the subsequent assessment and development of the project by the participating organisations.

If taken forward, the proposed urea plant could contribute to India's domestic fertiliser manufacturing capacity while strengthening Andhra Pradesh's position in the country's fertiliser and energy sectors.