Assam Govt to Take 40% Equity in BVFCL, Invest Rs 4,000 Cr for Revival

In a bid to revitalize the Brahmaputra Valley Fertilizer Corporation Limited (BVFCL) a central public sector undertaking in Dibrugarh’s Namrup, the Assam cabinet on Thursday approved acquiring 40 per cent equity ownership in the firm. An official intimation regarding the same will be sent to the Centre immediately, Chief Minister Himanta Biswa Sarma informed.

BVFCL, engaged in gas-based Urea production, awaits the inception of its fourth unit which is expected to boost production and augment it to meet current demands. Regarding this, Sarma said, “The most important decision taken during the cabinet meeting today was to revitalize the Namrup fertilizer facility and establish its fourth unit. I met Prime Minister Narendra Modi a few days ago and urged him that before February 25, that is Advantage Assam 2.0, there should be a decision on it.”

The joint venture between the Centre and the state government will result in 60 per cent of the ownership of BVFCL going to the Government of India, while 40 per cent ownership will remain with the Assam government. Under this arrangement, Assam will have to invest its share of 40 per cent in the revival project of the firm, the Chief Minister said.

He said, “Under directions of PM Modi, the Finance Ministry under Nirmala Sitharaman has submitted a project report on the entire thing. The total amount to be invested in the entire revitalization and establishment of the fourth unit comes to Rs 10,601 crore. The Government of India, in a letter, informed the Assam government that the Centre will hold 60 per cent ownership and 40 per cent ownership will be with the state government. If the state government agreed then work on this would progress.”

“Today, the Assam cabinet officially gave its nod to the proposal to take 40 per cent equity ownership of the facility. I think that after we inform the Centre of this decision, they will proceed with other formalities and work on this will gain momentum. I expect the people of Assam will receive good news regarding this in the next one to two months. With the completion of the project, BVFCL will be able to produce 12 lakh metric tons of Urea and Ammonia. At present, the capacity is around 1,80,000 metric tons of Urea,” said Chief Minister Sarma.

Stating that it was not an easy decision for the state government, he further added, “40 per cent equity ownership means that our investment in it will be close to Rs 4,000 crore. It is a difficult decision for a state like ours, but we want to revive the facility and we will send a letter to the Centre about this immediately.”

Equity stakes in power utility companies

Meanwhile, in addition to this decision, the Assam cabinet today also gave its nod to increasing its stake in power utility companies. The cabinet approved the conversion of government loans and grants to APDCL, AEGCL and APGCL into equity under provisions of the Indian Government Accounting Standard (IGAS)-4.

As such, APDCL’s Rs 397.39 crore loan, AEGCL’s Rs 19.89 crore loan and APGCL’s Rs 520.38 crore loan will be converted into equity holdings for the Assam government.

After returning back from Thimphu, I chaired the #AssamCabinet meeting where we approved

✅₹1,272cr for setting up Namrup IV unit of BVFCL
✅ Conversion of Govt loans into equity in power utility companies
✅Judicial Township, North Guwahati
✅₹81cr for rural roads pic.twitter.com/JEI4SPHopQ

— Himanta Biswa Sarma (@himantabiswa) December 19, 2024

Also Read: AASU Delegation Calls on JP Nadda in New Delhi, Demands Expansion of BVFCL