Bvfc Plans To Produce Methanol
The newly-formed Brahmaputra Valley Fertiliser Corporation (BVFC) is planning to convert its urea-producing Namrup-I facility in Assam into a methanol production unit. A proposal to this effect has been sent to the department of fertilisers.
The Namrup units (now BVFC) were part of Hindustan Fertiliser Corporation, which was shut down owing to poor performance.
The units were, however, found to be techno-commercially viable and subsequently demerged from HFC.
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The company is working on the investment details. It may raise money from the market or may approach lenders. The company is also trying to replace some of its machinery with those of the erstwhile Hindustan Fertiliser Corporation.
Chairman and managing director, B Bodeiah, who took over last month, said the production cost of urea at Namrup-I works out to Rs 15,000 a tonne, while as per the group policy it gets a concession of Rs 5,200 a tonne, which makes urea production financially unviable.
Bodeiah said the target, in case the government sanctions the proposal, is to produce 120 tonne of methanol a day.