The proposed gas-based fertiliser project at Saoner in Nagpur district has received a major boost with the signing of a memorandum of understanding (MoU) between Gas Authority of India Limited (GAIL) and Rashtriya Chemicals and Fertilizers Limited (RCF) on Wednesday. The project, involving an investment of approximately Rs 10,000 crore, is expected to significantly strengthen the region’s industrial and agricultural landscape. The MoU was signed in New Delhi by Sanjay Agarwal, Executive Director, Business Development & Start-up, GAIL; and Jyoti Patil, Executive Director, Projects, Corporate & Coordination, RCF.

 

The signing ceremony was attended by Deepak Gupta, Chairman and Managing Director of GAIL, and S Shivakumar, Chairman and Managing Director of RCF. The project will be implemented through a special purpose vehicle (SPV). In the first phase, a state-of-the-art urea manufacturing plant with a capacity of 1.27 million metric tonnes per annum (MMTPA) will be established along GAIL’s Mumbai–Nagpur–Jharsuguda Natural Gas Pipeline (MNJPL). The project is aligned with Prime Minister Narendra Modi’s vision of ‘Atmanirbhar Bharat’ and aims to increase domestic urea and fertiliser production while reducing dependence on imports. The selection of Saoner for this prestigious fertiliser project is the outcome of the long-term planning and sustained efforts of MLA Dr Ashishrao Deshmukh. MLA Dr Ashishrao Deshmukh said that the project is expected to improve the availability of urea and other fertilisers to farmers, help stabilise prices, protect farmers from exploitation, promote regional industrial growth and create large-scale employment opportunities.

 

Expressing his gratitude, Deshmukh thanked Chief Minister Devendra Fadnavis for his support in bringing the project to fruition. As part of the project’s development, Fadnavis held a meeting with senior GAIL officials on April 10, 2025. This was followed by a preliminary meeting on July 17 2025 and another discussion in Mumbai on August 4, 2025, after which GAIL conveyed a positive response to the Maharashtra Government. On August 12, 2025, GAIL submitted the final proposal to the State Government, which approved the project. Saoner was selected after considering water availability, connectivity to the natural gas pipeline, logistics, industrial growth potential and national food security requirements. Subsequently, on September 1, 2025, the Government of Maharashtra recommended the project to the Government of India for approval under the New Investment Policy (NIP) and assured full cooperation for its timely implementation.

 

On November 18, 2025, MLA Deshmukh, along with senior officials from GAIL and MIDC, inspected potential project sites at Khursapar, Jatamkhora, Jalalkheda and Sawli Mohatkar and reviewed the proposed project layout. Notably, Deshmukh has been consistently pursuing the establishment of a fertiliser manufacturing plant in Vidarbha since 2023. He regularly followed up with Chief Minister Fadnavis, senior GAIL officials, Union Agriculture Minister Shivraj Singh Chouhan, Union Minister for Health and Chemicals & Fertilisers J P Nadda and Union Home and Cooperation Minister Amit Shah. He effectively highlighted the availability of essential infrastructure, including the natural gas pipeline at Saoner.