The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the establishment of a urea plant in Assam at an estimated cost of ?10,601.4 crore. The initiative aims to reduce urea imports and enhance India's self-sufficiency in fertilizer production.
The project involves setting up a new brownfield Ammonia-Urea Complex with an annual production capacity of 12.7 lakh tonnes within the premises of Brahmaputra Valley Fertilizer Corporation Ltd (BVFCL) in Namrup, Assam. The plant will be developed through a Joint Venture (JV) with a debt-equity ratio of 70:30 and is expected to be commissioned within 48 months.
The cabinet has also approved National Fertilizers Ltd's (NFL) participation with an 18% equity stake, exceeding the limits outlined in the Department of Public Enterprises (DPE) guidelines. Additionally, an Inter-Ministerial Committee (IMC) will be formed to oversee the project's progress.
In the JV, the Assam government will hold a 40% stake, BVFCL will have 11%, Hindustan Urvarak & Rasayan Limited (HURL) 13%, NFL 18%, and Oil India Limited (OIL) 18%. BVFCL's equity contribution will be in the form of tangible assets.
The Namrup-IV plant is expected to enhance domestic urea production, particularly benefiting the northeastern region and states like Bihar, West Bengal, eastern Uttar Pradesh, and Jharkhand. The energy-efficient unit will create both direct and indirect employment opportunities, supporting local economic growth. The government emphasized that the project will play a key role in achieving self-reliance in urea production.