GAIL and KRIBHCO to explore Rs 13,500 crore urea plant in Andhra Pradesh
The proposed 1.27 MMTPA facility at Mulapeta is expected to create approximately 1,300 jobs.
GAIL (India) Limited and Krishak Bharati Cooperative Limited (KRIBHCO) have signed a Memorandum of Understanding (MoU) to explore setting up a gas-based urea plant in Andhra Pradesh, according to reports by The Pioneer and Moneycontrol.
The project, which involves an investment of Rs 13,500 crore in phases, is proposed for Mulapeta in the Srikakulam district. The facility is expected to have a capacity of 1.27 million metric tonnes per annum (MMTPA) and will be located along the Srikakulam Angul Natural Gas Pipeline (SAPL).
The companies have signed a pact with the Andhra Pradesh Economic Development Board to facilitate the project. The state government is expected to provide land, infrastructure, and incentives including a fixed capital subsidy, an interest-free loan for capital expenditure, and a 100 per cent refund of state GST.
The project is estimated to generate around 1,300 jobs, comprising 300-400 direct jobs and about 1,000 indirect jobs. GAIL and KRIBHCO intend to implement the project through a Joint Venture mode.
KRIBHCO Chairman V Sudhakar Chowdary said the MoU marks the beginning of a strategic partnership and expressed confidence that the partnership would bring value to the project. GAIL Director (Business Development) RK Singhal stated the move represents a strategic integration of India’s gas and fertiliser value chains.