RCF and Gail plan Maharashtra urea project through joint venture vehicle
RCF and Gail have signed an MoU to explore a 1.27 million tonne urea plant in Maharashtra through a special purpose vehicle. The project, if executed, could support India's push to lift domestic fertiliser output as imports rise.
India's fertiliser supply chain may be heading for another capacity addition, with two state-backed energy and chemicals players lining up a new urea project in Maharashtra. The proposed plant comes at a time when domestic output has softened and imports have climbed, keeping the spotlight on self-sufficiency in a politically sensitive crop input market.Rashtriya Chemicals and Fertilizers Ltd and Gail (India) Ltd have signed a memorandum of understanding to develop a gas-based fertiliser project with an annual capacity of 1.27 million tonnes, according to a regulatory filing cited on Wednesday. The companies plan to execute the project through a special purpose vehicle, signalling a structure that is increasingly common for large industrial investments requiring multiple clearances, feedstock linkages and long gestation periods.Project planned along a key gas corridorMNJPL, RCF said in its filing. That location is significant because access to gas infrastructure is central to the economics of urea production, which depends on reliable feedstock availability and efficient transport logistics.Why the move matters for fertiliser securityWhat the partnership could signal next