The Government of Chhattisgarh on Tuesday, December 23, signed a memorandum of understanding (MoU) with GAIL (India) Ltd to explore the development of a greenfield gas-based fertiliser project in the state.
Under the agreement, GAIL will carry out detailed techno-economic feasibility studies for setting up a urea manufacturing plant with a proposed capacity of 12.7 lakh metric tonnes per annum. The facility is planned to be strategically located along GAIL’s Mumbai–Nagpur–Jharsuguda natural gas pipeline corridor.
Based on the outcome of the feasibility and techno-economic assessment, GAIL will take a final investment decision on the project, stated the exchange filing.
The non-binding MoU was signed in the presence of Chhattisgarh Chief Minister Vishnu Deo Sai by Rajat Kumar, Secretary (Commerce and Industries), Government of Chhattisgarh, and Rajeev Kumar Singhal, Director (Business Development), GAIL.
According to the exchange filing, the Chhattisgarh government will extend support at all stages of the project, including assistance with feasibility studies, identification and allocation of suitable land, coordination with state and central authorities, facilitation of statutory approvals, and development of enabling infrastructure required for implementation.
Shares of GAIL (India) Ltd ended marginally higher on Tuesday, December 23, by 0.12% at ₹171.92 on the NSE.
