India approves brownfield ammonia-urea complex in Assam

With an estimated project cost of ₹10,601.40 crore (~$1.23 billion), the complex will be set up through a Joint Venture (JV) with a debt-equity ratio of 70:30. The initiative falls under the New Investment Policy, 2012, along with its amendments dated October 7, 2014. The tentative timeline for commissioning of Namrup-IV Project is 48 months.

The Cabinet also approved the National Fertilizers Limited (NFL)’s equity participation of 18 per cent, in relaxation to the limits prescribed in Department of Public Enterprises (DPE) guidelines. Additionally, an Inter-Ministerial Committee (IMC) will be constituted to oversee the establishment of the Namrup-IV Fertilizer Plant.

In the proposed JV, the Government of Assam will hold 40 per cent of the shares, while Brahmaputra Valley Fertilizer Corporation Limited (BVFCL) will own 11 per cent. Hindustan Urvarak & Rasayan Limited (HURL) will hold 13 per cent, and the remaining 36 per cent will be equally shared by National Fertilizers Limited (NFL) and Oil India Limited (OIL), with each holding 18 per cent. BVFCL’s equity share will be contributed in the form of tangible assets, the Cabinet stated in a media release.

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

The establishment of the Namrup-IV unit will be more energy efficient and will also create new employment opportunities for the local population. It will contribute to achieving the vision of self-reliance in urea production in the country.

Fibre2Fashion News Desk (HU)