Cabinet approves setting up of new Rs 10,000 crore Brownfield Ammonia-Urea complex in Assam

Cabinet approves setting up of new Rs 10,000 crore Brownfield Ammonia-Urea complex in Assam

The union cabinet on March 19 approved a proposal for setting up of a new brownfield Ammonia-Urea Complex of 12.7 Lakh Metric Tonnes (LMT) annual capacity of Urea production.

The cabinet chaired by Prime Minister Narendra Modi approved the new complex within the existing premises of Brahmaputra Valley Fertilizer Corporation Limited (BVFCL), Namrup Assam at an estimated total project cost of Rs 10,601.40 crore.

"There will be a debt equity ratio of 70:30 through a Joint Venture (JV), under the New Investment Policy, 2012. The tentative overall time schedule for commissioning of Namrup-IV Project is 48 months, the government said in a release.

Additionally, the cabinet also approved the National Fertilizers Limited (NFL)’s equity participation of 18 percent in relaxation to the limits prescribed in Department of Public Enterprises (DPE) guidelines; and constitution of an Inter-Ministerial Committee (IMC) to oversee the process of setting up of Namrup-IV Fertilizer Plant, it added.

The project is expected to increase the domestic urea production capacity in the country especially in the North-Eastern region. It will also meet the growing demand of urea fertilizers of North East, Bihar, West Bengal, Eastern Uttar Pradesh, and Jharkhand.

The establishment of Namrup-IV unit will be more energy efficient. It will also open avenues for additional direct and indirect employment opportunity to the people of the area. It shall help achieve the vision of self-reliance in Urea in the country.