Zuari Industries is planning to set up a urea plant at Belgaum in Karnataka with a capacity of 1.3 million tpa. It will use natural gas to produce urea and will entail an investment of Rs. 50,000 million. Natural gas will be transported by GAIL's Dabhol-Bangalore pipeline. Currently, the pipeline is under construction and is likely to be completed by 2012. The company is in the process of land acquisition and applied for requisite clearances.
As of December 2013, the company has shelved the project on account of difficulty in land acquisition.