GAIL and KRIBHCO explore Rs 13,500 crore urea plant in Andhra Pradesh
The companies signed a pact with the state economic development board to establish a manufacturing unit at Mulapeta.
GAIL (India) Limited and Krishak Bharati Cooperative Limited (KRIBHCO) have entered into an agreement with the Andhra Pradesh Economic Development Board to study the establishment of a urea plant in Andhra Pradesh, according to Business Standard and Moneycontrol.
The proposed project at Mulapeta in the Srikakulam district involves a 1.27 million metric tonnes per annum (MMTPA) urea manufacturing unit. The companies plan to invest approximately Rs 13,500 crore ($1.6 billion) in phases.
The facility is expected to create 300-400 direct jobs and around 1,000 indirect jobs. The state government will provide land, infrastructure, and potential incentives to support the project.
According to a memorandum of understanding seen by Moneycontrol, the government may offer a fixed capital subsidy, an interest-free loan for capital expenditure, and a 100 per cent refund of state GST. The state will also provide essential infrastructure such as roads, electricity, water, and railway connectivity.
This development occurs as Andhra Pradesh sees several large-scale investments, including a planned $15 billion AI hub by Google and a $2 billion manufacturing plant by the Indian unit of Kia Corp.