Proposed fertiliser manufacturing facility in Srikakulam district is expected to generate around 1,300 direct and indirect jobs
GAIL (India) Limited and Krishak Bharati Cooperative Limited (KRIBHCO) are planning to establish a ₹13,500 crore urea manufacturing facility at Mulapeta in Andhra Pradesh’s Srikakulam district, with an annual production capacity of 1.27 million metric tonnes.
The two organisations are expected to sign a Memorandum of Understanding (MoU) with the Andhra Pradesh Economic Development Board to facilitate the proposed investment, according to a Moneycontrol report.
The project is planned to be developed in phases, with a combined investment of approximately ₹13,500 crore by GAIL and KRIBHCO.
Once implemented, the proposed fertiliser plant is expected to create around 1,300 employment opportunities, including 300–400 direct jobs and approximately 1,000 indirect jobs.
Andhra Pradesh government is expected to support the project through a package of investment incentives aimed at facilitating the establishment of the manufacturing facility.
According to the reported draft agreement, the proposed incentives include a fixed capital subsidy, an interest-free loan towards project capital expenditure and a 100% refund of state Goods and Services Tax (GST).
State government is also expected to provide land at a nominal cost and facilitate essential infrastructure, including road access, electricity, water supply and railway connectivity, up to the project site without additional cost.
Proposed facility would represent a major investment in fertiliser manufacturing in Andhra Pradesh and is expected to support industrial activity and employment generation in Srikakulam district.
GAIL, a central public sector enterprise operating in the natural gas sector, and KRIBHCO, a fertiliser cooperative, are expected to collaborate on the proposed project.
MoU would mark an initial step towards establishing the facility. Further details regarding the construction schedule, commissioning date and financing arrangements have not been specified in the information available.
