Guwahati, Mar 19: The Union Cabinet has approved the establishment of a ₹10,601.4 crore urea plant in Namrup, Assam, to enhance domestic fertilizer production and reduce reliance on imports.
The new brownfield Ammonia-Urea Complex, with an annual production capacity of 12.7 lakh tonnes, will be set up within the existing premises of Brahmaputra Valley Fertilizer Corporation Ltd (BVFCL). The project, to be executed through a joint venture, is expected to be completed in 48 months.
The joint venture will see the Assam government holding a 40% stake, while BVFCL will have 11%, Hindustan Urvarak & Rasayan Limited (HURL) 13%, National Fertilizers Ltd (NFL) 18%, and Oil India Limited (OIL) 18%. BVFCL’s contribution will be in the form of tangible assets.
Additionally, the Cabinet has approved NFL’s 18% equity participation, relaxing the limits under Department of Public Enterprises (DPE) guidelines. An Inter-Ministerial Committee (IMC) has been set up to oversee the implementation of the Namrup-IV Fertilizer Plant.
The plant is expected to strengthen the fertilizer supply chain in the Northeast and benefit states such as Bihar, West Bengal, eastern Uttar Pradesh, and Jharkhand. Designed as an energy-efficient unit, it will also generate direct and indirect employment opportunities in the region.
The project is part of the government’s efforts to achieve self-sufficiency in urea production and ensure steady fertilizer availability for the agricultural sector.
