The Union Cabinet, chaired by PM Modi, has approved the establishment of a new Brownfield Ammonia-Urea Complex with an annual production capacity of 12.7 Lakh Metric Tonnes (LMT) within the existing premises of Brahmaputra Valley Fertilizer Corporation Limited (BVFCL), Namrup, Assam.
The project, with an estimated total cost of Rs 10,601.40 crore, will be executed under a Joint Venture (JV) with a Debt-Equity ratio of 70:30, in accordance with the New Investment Policy, 2012, and its amendments on October 7, 2014. The commissioning timeline for the Namrup-IV Project is set at 48 months.
As part of the approval, the Cabinet has also sanctioned National Fertilizers Limited’s (NFL) equity participation of 18 percent, granting an exemption from the limits prescribed under the Department of Public Enterprises (DPE) guidelines. Additionally, an Inter-Ministerial Committee (IMC) will be constituted to oversee the establishment and execution of the Namrup-IV Fertilizer Plant.
The equity structure of the Joint Venture will consist of a 40 percent share by the Government of Assam, while Brahmaputra Valley Fertilizer Corporation Limited (BVFCL) will hold 11 percent. Hindustan Urvarak & Rasayan Limited (HURL) will contribute 13 percent, while both National Fertilizers Limited (NFL) and Oil India Limited (OIL) will hold 18 percent each. BVFCL’s equity share will be in the form of tangible assets.
The project is expected to enhance domestic Urea production capacity, particularly benefiting the North-Eastern region. It will help meet the rising demand for Urea fertilizers in North-East India, Bihar, West Bengal, Eastern Uttar Pradesh, and Jharkhand. The Namrup-IV unit is designed to be more energy-efficient and will generate both direct and indirect employment opportunities in the region.
