Union Cabinet Approves Rs 10,601 Cr New Urea Plant In Assam

The Union Cabinet has approved the establishment of a new Brownfield ammonia-urea complex at Brahmaputra Valley Fertilizer Corporation Limited (BVFCL) in Assam's Namrup.

The upcoming Namrup-IV complex will have an annual production capacity of 12.7 lakh metric tonnes (LMT) of urea and will be developed at an estimated cost of Rs 10,601.40 crore. The project is expected to be completed within four years.

The initiative will be implemented through a joint venture (JV) under the New Investment Policy, 2012, with a revised framework from October 7, 2014. It will follow a debt-equity ratio of 70:30, ensuring financial viability. Notably, National Fertilizers Limited (NFL) has been granted approval to participate in the equity structure with an 18 per cent stake, exceeding the standard limits set by the Department of Public Enterprises (DPE) guidelines. To oversee the project, the government will establish an Inter-Ministerial Committee (IMC).

As per the equity distribution plan, the Government of Assam will hold the largest share at 40 per cent, while BVFCL will contribute 11 per cent through tangible assets. Hindustan Urvarak & Rasayan Limited (HURL) will own 13 per cent, and both NFL and Oil India Limited (OIL) will hold 18 per cent each.

The Namrup-IV plant aims to boost domestic urea production, particularly in the North-Eastern region, to meet the increasing demand for fertilizers in Bihar, West Bengal, Eastern Uttar Pradesh, and Jharkhand. The plant will incorporate advanced energy-efficient technology, ensuring sustainable production. Additionally, the project is expected to generate significant employment opportunities and contribute to India's broader objective of achieving self-sufficiency in urea production.

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