The Union Cabinet, led by Prime Minister Narendra Modi, has officially approved the creation of a new Brownfield Ammonia-Urea Complex (Namrup-IV) at the Brahmaputra Valley Fertilizer Corporation Limited (BVFCL) in Namrup, Assam. This project is set to have an annual production capacity of 12.7 Lakh Metric Tonnes (LMT) of urea and will be developed as a Joint Venture (JV) under the New Investment Policy (NIP) 2012. The total cost of the project is estimated at ₹10,601.40 crore, with a Debt-Equity ratio of 70:30. The plant is anticipated to be operational within 48 months, significantly boosting domestic urea production, enhancing fertilizer availability in Eastern India, and generating new employment opportunities.
Key Highlights:
Project Overview:
- Project Name: Namrup-IV Fertilizer Plant
- Location: Brahmaputra Valley Fertilizer Corporation Limited (BVFCL), Namrup, Assam
- Type: Brownfield Ammonia-Urea Complex
- Annual Urea Production Capacity: 12.7 Lakh Metric Tonnes (LMT)
- Estimated Cost: ₹10,601.40 crore
- Debt-Equity Ratio: 70:30
- Implementation Timeline: 48 months
Equity Participation in Joint Venture (JV):
- Government of Assam: 40%
- Brahmaputra Valley Fertilizer Corporation Limited (BVFCL): 11%
- Hindustan Urvarak & Rasayan Limited (HURL): 13%
- National Fertilizers Limited (NFL): 18%
- Oil India Limited (OIL): 18%
- BVFCL’s Contribution: In the form of tangible assets
Cabinet Approvals:
- Establishment of the Namrup-IV Fertilizer Plant as a Brownfield Ammonia-Urea Complex.
- Relaxation of Department of Public Enterprises (DPE) guidelines for NFL’s 18% equity participation.
- Formation of an Inter-Ministerial Committee (IMC) to oversee project implementation.
Strategic Importance:
- Enhances urea production in the North-Eastern region of India.
- Reduces dependency on urea imports, supporting India’s goal of self-reliance in fertilizer production.
- Ensures fertilizer availability for key agricultural states including Assam, Bihar, West Bengal, Eastern Uttar Pradesh, and Jharkhand.
- Boosts energy efficiency through the use of modern technology.
- Creates both direct and indirect employment opportunities in the region.
