Sonowal welcomes proposed new ammonia-urea complex in Assam

Sports Minister Sarbananda Sonowal today welcomed the government's decision to set up a new ammonia-urea complex in Assam with an estimated investment of Rs 4,500 crore.
"It is a very welcome move. I want to thank Prime Minister Narendra Modi and Fertiliser Minister Ananth Kumar for giving the biggest gift to Assam and the northeast," he told PTI here.
Sonowal, who hails from Assam, said the new project will help the farmers of the northeast to a great extent and also improve the rural economy of the region.
The Union Cabinet, chaired by the Prime Minister gave its approval for setting up of a new ammonia-urea complex of 8.64 lakh metric tonnes annual capacity with an estimated investment of Rs 4,500 crore at Namrup in Assam on Public Private Partnership (PPP) route by a Joint Venture (JV).

The proposed JV between a PSU of Department of Fertilizers namely Brahmaputra Valley Fertilizer Corporation Limited (BVFCL), government of Assam and Oil India Limited will have 11 per cent, 11 per cent and 26 per cent equity holding respectively and balance 52 per cent by private/public sector entities) which would be inducted through a competitive bidding process.
The Cabinet also approved the financial restructuring of BVFCL by waiving entire cumulative interest (Rs 774.61 crore as on 31.03.2015) till date accrued on government of India loans and a loan of Rs 21.96 crore and conversion of loans of Rs. 594.71 crore as interest free loan.

It will enable the BVFCL to participate as equity partner in this project and will sustain the operation of the existing plants during the interim period till the new plant comes into operation.