Cabinet approves ₹10,601 crore brownfield ammonia urea plant in Assam

The Namrup-IV Project will be financed through a JV with a 70:30 debt-equity ratio under the New Investment Policy, 2012 (amended in 2014), and is expected to be completed in the next four years

The Union Cabinet on Wednesday approved the establishment of a new Brownfield ammonia-urea Complex at Brahmaputra Valley Fertilizer Corporation Limited (BVFCL) in Namrup, Assam. The complex will have an annual urea production capacity of 12.7 lakh metric tonnes (LMT) and will be developed at an estimated cost of ₹10,601.40 crore.

 

The project will be financed through a joint venture (JV) with a debt-equity ratio of 70:30 under the New Investment Policy, 2012, as amended on October 7, 2014. The commissioning of the Namrup-IV Project is expected to be completed in four years.  

 

The Cabinet has also approved National Fertilizers Limited (NFL)’s participation in the equity structure at 18 per cent, exceeding the limits set by the Department of Public Enterprises (DPE) guidelines. Additionally, an Inter-Ministerial Committee (IMC) will be formed to oversee the establishment of the Namrup-IV Fertiliser Plant.  

 

 

Under the proposed JV, the equity distribution will be as follows: The Government of Assam will hold 40 per cent, BVFCL will have 11 per cent, Hindustan Urvarak & Rasayan Limited (HURL) will own 13 per cent, and both NFL and Oil India Limited (OIL) will each have an 18 per cent stake. BVFCL's equity contribution will be in the form of tangible assets.  

 

The project is expected to enhance domestic urea production, particularly in the North-Eastern region, and meet the rising demand for fertilisers in states such as Bihar, West Bengal, Eastern Uttar Pradesh, and Jharkhand. The Namrup-IV unit will operate with greater energy efficiency and create both direct and indirect employment opportunities in the region. Additionally, the project will contribute to India's goal of achieving self-sufficiency in urea production.