Krishak Bharati Cooperative Limited (KRIBHCO) is steadily expanding its role in India’s fertilizer landscape, moving beyond its established manufacturing operations to explore new opportunities for strengthening domestic production capacity. In a significant development, the cooperative has joined hands with GAIL (India) Limited and the Andhra Pradesh Economic Development Board (APEDB) to explore setting up a major gas-based urea manufacturing plant in Andhra Pradesh.
A Memorandum of Understanding (MoU) to this effect was signed on November 12 at the 31st CII Partnership Summit 2026 in Visakhapatnam, in the presence of Andhra Pradesh Chief Minister N. Chandrababu Naidu.
The proposed facility, with an envisaged annual production capacity of 1.27 million metric tonnes (MMTPA), is expected to come up at Mulapeta in Srikakulam district, along GAIL’s Srikakulam-Angul Natural Gas Pipeline.
The agreement brings together three institutions with complementary strengths: KRIBHCO’s experience in fertilizer manufacturing and marketing, GAIL’s expertise in natural gas infrastructure and supply, and APEDB’s investment facilitation capabilities. Their collaboration could pave the way for a major industrial investment while adding substantial capacity to India’s domestic urea production.
The MoU was signed by C. S. Azad, Executive Director (Technical), KRIBHCO; Sanjay Agarwal, Executive Director (Business Development, Start-up and R&D), GAIL; and Sagili Shan Mohan, IAS, Chief Executive Officer, APEDB.
Among those present were V. Sudhakar Chowdary, Chairman, KRIBHCO; S. S. Yadav, Managing Director, KRIBHCO; and R. K. Singhal, Director (Business Development), GAIL.
For KRIBHCO, the proposed project represents another important step in its evolving growth trajectory. Traditionally recognised as one of India’s leading fertilizer cooperatives, the organisation is increasingly positioning itself as an important partner in the country’s broader industrial and agricultural development agenda.
The proposed Andhra Pradesh facility, if realised, would add a significant production base to the country’s fertilizer ecosystem. With an annual capacity of 1.27 million tonnes, it could help improve the availability of domestically manufactured urea, reduce dependence on imports and strengthen the supply chain serving farmers.
The choice of Mulapeta is also significant, as the proposed plant would be located along GAIL’s natural gas pipeline, an important requirement for an economically viable gas-based fertilizer facility. Natural gas is a key feedstock in urea manufacturing, making assured access to gas infrastructure critical for the project’s long-term operations.
The initiative also reflects the growing importance of cooperative institutions in large-scale industrial ventures. KRIBHCO’s participation alongside a major public-sector energy company such as GAIL demonstrates how the cooperative sector can contribute to projects involving substantial investment, technology and national economic priorities.
While the MoU provides a framework for exploring the project and does not yet constitute a final investment decision, it marks a potentially significant development for KRIBHCO and Andhra Pradesh.
At a time when India is seeking to strengthen fertilizer security and reduce its vulnerability to international supply disruptions, KRIBHCO’s proposed expansion adds another dimension to the cooperative’s contribution to national development.
