GAIL Signs MoU with Chhattisgarh for 12.7 LMT Gas-Based Urea Project

State-run GAIL (India) Ltd has signed a memorandum of understanding (MoU) with the Chhattisgarh government to explore the development of a new gas-based fertiliser project in the state.

What Will GAIL Study Under the MoU?

Under the agreement, GAIL will carry out detailed techno-economic feasibility studies to set up a 12.7 lakh metric tonne (LMT) urea manufacturing plant. The proposed project will be located along GAIL’s Mumbai–Nagpur–Jharsuguda natural gas pipeline (MNJPL) corridor, which offers access to gas supply and connectivity.

When Will the Investment Decision Be Taken?

GAIL will take a final investment decision only after reviewing the results of the techno-economic studies. The company will assess project viability, costs, and long-term benefits before moving ahead.

Support from the Chhattisgarh Government

The state government has assured full support for the project, including:

• Assistance in feasibility studies
• Identification and allocation of suitable land
• Coordination between different government departments
• Help in obtaining statutory approvals
• Support in developing required infrastructure

Officials Present at the MoU Signing

The MoU was signed in the presence of Chhattisgarh Chief Minister Vishnu Deo Sai, Rajat Kumar, Secretary (Commerce and Industries), Government of Chhattisgarh, and Rajeev Kumar Singhal, Director (Business Development), GAIL (India).

GAIL Share Price Movement

GAIL (India) share price (NSE: GAIL) ended marginally higher on December 23, closing at ₹171.92 on the NSE, up 0.12% (₹0.20) from the previous close. The stock opened at ₹171.51 and moved in a narrow range, touching an intraday high of ₹172.70 and a low of ₹171.13. Over the past year, the stock has traded between a 52-week high of ₹202.79 and a 52-week low of ₹150.52. 

Conclusion

The MoU marks an important step towards boosting domestic fertiliser production and improving gas-based infrastructure in Chhattisgarh. If approved, the project could support agriculture, reduce import dependence, and create long-term economic benefits for the state.

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