Fertilizer manufacturing units are on an expansion mode in East Godavari district, thanks to availability of resources such as natural gas, water and quality manpower. Two fertilizer majors – Nagarjuna Fertilizers and Chemicals Limited (NFCL) and the Coromandel International – which already have established their units in Kakinada, have registered a significant increase in their production over a period of time. Natural gas, allocated by the Reliance and the ONGC, is being supplied through GAIL pipelines to the NFCL, which has shifted from naphtha to natural gas five years ago.

Similarly, water is being supplied through the Dowlaiswaram canal from Godavari River. Of the total manufacturing capacity of 16 lakh tonnes per annum, the firm is now producing 12.5 lakh tonnes, catering to the one third of the total fertilizer need of Andhra Pradesh and Telangana.