Union Cabinet has approved establishment of a Brownfield Ammonia-Urea Complex (Namrup-IV Fertilizer Plant) within premises of Brahmaputra Valley Fertilizer Corporation Limited (BVFCL) in Namrup, Assam. This project aims to enhance urea production and meet the growing fertilizer demand in North-East India, Bihar, West Bengal, Eastern Uttar Pradesh, and Jharkhand.
About Namrup-IV Fertilizer Plant
Project Cost and Production Capacity:
- Total Project Cost: ₹10,601.40 crore.
- Production Capacity: 12.7 Lakh Metric Tonnes (LMT) of urea annually.
- Objective: Strengthen India’s urea production and reduce dependency on imports.
Joint Venture (JV) and Shareholding Structure:
The project will be implemented through a joint venture with the following equity distribution:
- Government of Assam: 40% shares.
- Brahmaputra Valley Fertilizer Corporation Limited (BVFCL): 11% shares (in the form of tangible assets).
- Hindustan Urvarak & Rasayan Limited (HURL): 13% shares.
- National Fertilizers Limited (NFL): 18% shares.
- Oil India Limited (OIL): 18% shares.
Debt-Equity Ratio: 70:30 (70% debt and 30% equity).
Timeline: The tentative timeline for project commissioning is 48 months.
Special Cabinet Approvals
Equity Relaxation for NFL: The Cabinet approved National Fertilizers Limited (NFL) to participate with 18% equity, relaxing the guidelines set by the Department of Public Enterprises (DPE).
Inter-Ministerial Committee (IMC): An IMC will be constituted to oversee the establishment of the Namrup-IV Fertilizer Plant and facilitate smooth implementation.
Significance of Namrup-IV Fertilizer Plant
- Energy Efficiency: The new unit will be more energy-efficient than the existing ones, reducing energy consumption in fertilizer production.
- Employment Generation: The project is expected to create new employment opportunities, benefiting the local population.
- Self-Reliance in Urea Production: This initiative will contribute to the vision of achieving Atmanirbhar Bharat (self-reliance) in fertilizer production, reducing import dependency, and stabilizing urea supply in the region.
About Brahmaputra Valley Fertilizer Corporation Limited (BVFCL)
BVFCL, located in Namrup, Assam, is a public sector fertilizer manufacturer operating under the Ministry of Chemicals and Fertilizers. It plays a key role in supplying urea to the agricultural sector, especially in the North-East and eastern India.