State gas utility GAIL India today said it has signed an agreement with Indian Farmers Fertiliser Cooperative (IFFCO) for looking at the possibilities of setting up a gas-based power plant and a fertiliser unit in India.
The Memorandum of Understanding (MoU) was signed by GAIL Director (Business Development) A K Purwaha and IFFCO Director (Technical) V K Bali, a GAIL statement said here.
The two firms would evaluate the potential of setting up of a gas-based power plant and other industries including chemicals, fertilisers, compressed natural gas (CNG) and piped natural gas (PNG) in India and also explore the possibility of sourcing of natural gas/LNG for the identified projects.
The feasibility study for the identified projects would be carried out by GAIL and IFFCO jointly. Subsequently, based on the techno-economics of the project, a joint venture company would be floated for implementing the projects.
GAIL Chairman and Managing Director U D Choubey said with the increased availability of natural gas in the country from eastern offshore, more gas is likely to be available for the fertiliser sector.
With 7,000-kilometer of GAIL's natural gas pipeline network and upcoming additional 5,500-km pipeline, pipeline infrastructure will not be a constraint for providing gas to the fertiliser industry, he said.
IFFCO Managing Director U S Awasthi described the signing of the MoU as a major milestone wherein a raw material supplier has joined hands with the consumer. He also highlighted the common value systems of the two organisations such as best safety standards, work ethics and emphasis of corporate governance and hoped that the MoU will add value for both the companies.