New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the establishment of a Rs. 10,601.40 crore brownfield ammonia-urea complex at Namrup, Assam.
The project, located within the Brahmaputra Valley Fertilizer Corporation Limited (BVFCL) premises, is set to produce 12.7 lakh metric tonnes (LMT) of urea annually.
To be executed under a joint venture (JV) model with a 70:30 debt-to-equity ratio, the project falls under the New Investment Policy of 2012 and its subsequent amendments.
It is expected to be operational within 48 months, according to an official statement.
The equity distribution within the JV will see the Assam government holding a 40% stake, BVFCL with 11%, Hindustan Urvarak & Rasayan Limited (HURL) with 13%, and National Fertilizers Limited (NFL) and Oil India Limited (OIL) each owning an 18% share.
BVFCL’s equity will be in the form of tangible assets.
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The project will significantly enhance domestic urea production, particularly in the northeastern region, catering to the fertilizer demand in Assam, Bihar, West Bengal, eastern Uttar Pradesh, and Jharkhand.
The advanced Namrup-IV plant is designed to be more energy-efficient, contributing to India’s goal of achieving self-reliance in urea production.
In addition to meeting agricultural needs, the project is expected to create substantial direct and indirect employment opportunities, benefiting the local population and driving economic growth in the region.
