Cabinet Approves Namrup-IV Fertilizer Plant in Assam

The Union Cabinet, led by Prime Minister Narendra Modi, has approved the establishment of a new Brownfield Ammonia-Urea Complex (Namrup-IV) at Brahmaputra Valley Fertilizer Corporation Limited (BVFCL), Namrup, Assam. The 12.7 Lakh Metric Tonnes (LMT) annual capacity plant will be developed as a Joint Venture (JV) under the New Investment Policy (NIP) 2012, with a total estimated project cost of ₹10,601.40 crore and a Debt-Equity ratio of 70:30. The project is expected to be commissioned in 48 months and will significantly boost domestic Urea production, improve fertilizer availability in Eastern India, and create new employment opportunities.

Key Highlights

Project Overview

• Project Name: Namrup-IV Fertilizer Plant.
• Location: Brahmaputra Valley Fertilizer Corporation Limited (BVFCL), Namrup, Assam.
• Type: Brownfield Ammonia-Urea Complex.
• Annual Urea Production Capacity: 12.7 Lakh Metric Tonnes (LMT).
• Estimated Cost: ₹10,601.40 crore.
• Debt-Equity Ratio: 70:30.
• Implementation Timeline: 48 months.

Equity Participation in Joint Venture (JV)

• Entity Equity Share (%)
• Government of Assam 40%
• Brahmaputra Valley Fertilizer Corporation Limited (BVFCL) 11%
• Hindustan Urvarak & Rasayan Limited (HURL) 13%
• National Fertilizers Limited (NFL) 18%
• Oil India Limited (OIL) 18%
• BVFCL’s contribution will be in the form of tangible assets.

Cabinet Approvals

• Establishment of Namrup-IV Fertilizer Plant as a Brownfield Ammonia-Urea Complex.
• Relaxation in Department of Public Enterprises (DPE) guidelines for NFL’s 18% equity participation.
• Formation of an Inter-Ministerial Committee (IMC) to oversee the project implementation process.

Strategic Importance

• Enhances Urea production in the North-Eastern region of India.
• Reduces dependency on Urea imports, aligning with India’s goal of self-reliance in fertilizer production.

Ensures fertilizer availability for key agricultural states,

• Assam, Bihar, West Bengal, Eastern Uttar Pradesh, and Jharkhand.
• Boosts energy efficiency through modern technology.
• Creates employment opportunities (direct and indirect) in the region.