Union Cabinet approves ₹10,601 cr ammonia-urea complex at Assam’s Namrup to boost fertiliser prodn
New Delhi: The Union Cabinet on Wednesday approved the establishment of a new brownfield ammonia-urea complex at Brahmaputra Valley Fertilizer Corporation Limited (BVFCL) in Namrup in Assam, media reports said.
The facility will have an annual production capacity of 12.7 lakh metric tonnes (LMT) of urea and will be developed at an estimated cost of ₹10,601.40 crore, reported Business Standard.
The project will be executed through a joint venture (JV) with a debt-equity ratio of 70:30 under the New Investment Policy, 2012, as amended on October 7, 2014. The Namrup-IV project is expected to be commissioned within four years.
The Cabinet has granted approval for National Fertilizers Limited (NFL) to hold an 18 percent stake in the JV, exceeding the standard limits prescribed by the Department of Public Enterprises (DPE) guidelines.
An Inter-Ministerial Committee (IMC) will also be constituted to oversee the plant's establishment.
As per the proposed equity structure, the Government of Assam will hold a 40 percent stake, BVFCL will own 11 percent, Hindustan Urvarak & Rasayan Limited (HURL) will have 13 percent, while NFL and Oil India Limited (OIL) will each hold an 18 percent share. BVFCL’s contribution to the equity will be in the form of tangible assets.
The project aims to enhance domestic urea production, particularly in the North-Eastern region, and address the growing fertiliser demand in Bihar, West Bengal, Eastern Uttar Pradesh, and Jharkhand.
The Namrup-IV unit will operate with improved energy efficiency and is expected to generate both direct and indirect employment in the region.
The initiative will contribute to India's goal of achieving self-sufficiency in urea production.
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