The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved a proposal to establish a new brownfield ammonia-urea complex in Assam. The project, located at the existing premises of Brahmaputra Valley Fertiliser Corporation Limited (BVFCL) in Namrup, will have an annual capacity to produce 12.7 lakh metric tonnes (LMT) of urea. With an estimated project cost of Rs. 10,601.40 crore, the initiative is a significant step toward increasing domestic urea production.
The Namrup-IV project will be funded through a joint venture (JV) with a 70:30 debt-to-equity ratio, under the New Investment Policy of 2012 and its amendments made in 2014. The project is expected to be completed within 48 months. The Cabinet also approved the participation of National Fertilisers Limited (NFL) with an 18% equity stake in the JV, which is a relaxation from the Department of Public Enterprises (DPE) guidelines. An Inter-Ministerial Committee (IMC) will also be formed to oversee the project’s implementation.
In terms of equity ownership, the Assam government will hold 40%, BVFCL will have an 11% stake, Hindustan Urvarak & Rasayan Limited (HURL) will own 13%, and both NFL and Oil India Limited (OIL) will each hold 18%. The BVFCL’s equity share will be on the basis of tangible assets.
This new urea complex will not only increase the production capacity of urea but also satisfy the increasing fertilizer demand in the northeastern states, along with Bihar, West Bengal, Uttar Pradesh, and Jharkhand. The project will go a long way in bringing self-reliance in urea production in India, as well as making India energy-efficient in terms of fertilizer production.
In addition, the commissioning of Namrup-IV will generate many direct and indirect job opportunities for local people, further stimulating regional economic development. The project represents a significant milestone towards fulfilling the nation’s agricultural fertilizer requirements and fostering the vision of urea production self-sufficiency.
