Guwahati: The Union Cabinet has approved the establishment of a new Brownfield Ammonia-Urea Complex at Brahmaputra Valley Fertilizer Corporation Limited (BVFCL) in Assam's Namrup on March 19. This new complex, known as the Namrup-IV Fertilizer Plant, will have an annual production capacity of 12.7 Lakh Metric Tonnes (LMT) of Urea with a total estimated project cost of Rs. 10,601.40 Crore.
The project will be financed through a 70:30 Debt-Equity ratio under the New Investment Policy, 2012, and its amendments made on October 7, 2014. The expected timeline for the commissioning of the Namrup-IV project is 48 months.
The Cabinet also approved National Fertilizers Limited (NFL)'s equity participation of 18 percent, in a relaxation of the limits prescribed in the Department of Public Enterprises (DPE) guidelines. Additionally, an Inter-Ministerial Committee (IMC) will be formed to oversee the setting up of the Namrup-IV Fertilizer Plant.
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The equity distribution in the proposed Joint Venture (JV) will be as follows:
Government of Assam: 40 per cent
Brahmaputra Valley Fertilizer Corporation Limited (BVFCL): 11 per cent
Hindustan Urvarak & Rasayan Limited (HURL): 13 percent
National Fertilizers Limited (NFL): 18 per cent
Oil India Limited (OIL): 18 per cent
Meanwhile, BVFCL’s share of equity will be based on tangible assets. The establishment of this new plant will significantly enhance domestic Urea production, particularly in the North-Eastern region, and will help meet the growing demand for Urea fertilizers in North East India, Bihar, West Bengal, Eastern Uttar Pradesh, and Jharkhand. The Namrup-IV unit will also be more energy-efficient and is expected to create additional direct and indirect employment opportunities in the region. The project aligns with India's goal of achieving self-reliance in Urea production.
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