Cabinet approves Rs 10,601 crore urea plant in Assam

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the establishment of a new Rs 10,601.4 crore Ammonia-Urea Complex at Brahmaputra Valley Fertilizer Corporation Ltd (BVFCL) in Namrup, Assam. 

The project, known as Namrup-IV, will produce 12.7 lakh tonnes of urea annually, reducing India's dependency on imports and enhancing domestic fertilizer production.

The plant will be set up as a Joint Venture (JV) with a 70:30 debt-equity ratio. The Assam government will hold a 40% stake, while BVFCL (11%), Hindustan Urvarak & Rasayan Limited (HURL) (13%), National Fertilizers Ltd (NFL) (18%), and Oil India Limited (OIL) (18%) will be stakeholders. BVFCL’s equity share will be contributed in the form of tangible assets.

The government has also approved an 18% equity participation for NFL, relaxing the existing Department of Public Enterprises (DPE) guidelines. 

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Additionally, an Inter-Ministerial Committee (IMC) will be constituted to oversee the implementation of the project, which is expected to be commissioned within 48 months.

The new plant will increase domestic urea production, benefiting farmers in the Northeast, Bihar, West Bengal, Eastern Uttar Pradesh, and Jharkhand. 

It will be more energy-efficient compared to the existing units and is expected to generate significant employment opportunities in the region. 

The government emphasized that the project aligns with its vision of achieving self-reliance in urea production and strengthening agricultural support infrastructure in the country.