India's state-run Gujarat State Fertilizers and Chemicals (GSFC) is mulling the possibility of setting up an ammonia-urea plant in Iran, a top official said.

"We are keen to set up an ammonia-urea plant in Iran due to the availability of natural gas, which is a raw material for ammonia at cheaper rate there. This plant is expected to cost around $800 million,” A M Tiwari, GSFC managing director was quoted as saying in an Iran Daily report, which cited PTI.

"One of the important things about this development is free trade zone, where a total investment of $15 billion is envisaged. Indian companies would set up a range of industries from aluminium smelter to urea plants in the region," he added.