Cabinet Approves Rs 10,601 Crore Urea Production Facility In Assam

The Union Cabinet approved the establishment of a new Brownfield ammonia-urea complex at Brahmaputra Valley Fertilizer Corporation Limited (BVFCL) in Namrup, Assam On Wednesday.

This project aims to boost urea production in the region and the government will invest ₹10,601.40 crore.

Namrup-IV Complex To Boost Urea Production

The new complex, named Namrup-IV, will have an annual urea production capacity of 12.7 lakh metric tonnes (LMT).

The Cabinet has authorized the creation of this facility under a joint venture (JV) framework with a 70:30 debt-equity ratio, in line with the New Investment Policy, 2012, amended in October 2014.

The project is expected to be completed within four years.

Under the proposed JV, several key entities will hold stakes in the Namrup-IV project:

• Government of Assam will hold 40% equity.
• BVFCL will contribute 11%.
• Hindustan Urvarak & Rasayan Limited (HURL) will own 13%.
• National Fertilizers Limited (NFL) and Oil India Limited (OIL) will each own 18%.

The equity contribution by BVFCL will be in the form of tangible assets.

The Cabinet also approved the NFL’s participation in the JV, exceeding the limits set by the Department of Public Enterprises (DPE) guidelines.

Enhanced Fertilizer Production For The Region

The Namrup-IV unit is expected to enhance urea production, particularly in the North-Eastern region of India.

The facility will help meet the growing demand for fertilizers in states such as Bihar, West Bengal, Eastern Uttar Pradesh, and Jharkhand.

By operating with greater energy efficiency, the project will contribute significantly to India’s goal of self-sufficiency in urea production.

Additionally, it will create both direct and indirect employment opportunities in Assam and surrounding areas.

The government will set up an Inter-Ministerial Committee (IMC) to monitor the Namrup-IV Fertilizer Plant.

This initiative aims to strengthen India’s fertilizer production capacity and meet the growing agricultural needs.

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