The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the establishment of a new Brownfield Ammonia-Urea Complex within the existing premises of Brahmaputra Valley Fertilizer Corporation Limited (BVFCL) in Namrup, Assam. The project, with an annual urea production capacity of 12.7 Lakh Metric Tonnes (LMT), is set to be implemented at an estimated cost of ₹10,601.40 crore under a Joint Venture (JV) model with a debt-equity ratio of 70:30, in line with the New Investment Policy, 2012, and its amendments from October 7, 2014. The tentative timeline for commissioning the Namrup-IV project is 48 months.
Additionally, the Cabinet has approved National Fertilizers Limited (NFL)’s equity participation of 18%, relaxing limits prescribed by the Department of Public Enterprises (DPE) guidelines. An Inter-Ministerial Committee (IMC) will also be constituted to oversee the project’s implementation.
Proposed JV Equity Structure:
- Government of Assam – 40%
- Brahmaputra Valley Fertilizer Corporation Limited (BVFCL) – 11%
- Hindustan Urvarak & Rasayan Limited (HURL) – 13%
- National Fertilizers Limited (NFL) – 18%
- Oil India Limited (OIL) – 18%
BVFCL’s equity share will be provided in the form of tangible assets.
The project aims to boost domestic urea production, particularly in the North-Eastern region, and meet the rising fertilizer demand in Assam, Bihar, West Bengal, Eastern Uttar Pradesh, and Jharkhand. The Namrup-IV unit will feature enhanced energy efficiency, creating direct and indirect employment opportunities while contributing to India’s vision of self-reliance in urea production.