Govt approves setting up of urea plant in Assam at Rs 10,601.4 cr

New Delhi, Mar 19 (PTI) The Union Cabinet on Wednesday approved setting up of a urea plant in Assam with an estimated cost of Rs 10,601.4 crore as part of its effort to reduce import of this key crop nutrient and make India self-sufficient.

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the proposal for setting up of a new brownfield Ammonia-Urea Complex of 12.7 lakh tonnes annual capacity of urea production within the existing premises of Brahmaputra Valley Fertilizer Corporation Ltd (BVFCL), Namrup Assam.

The plant will be established with an estimated total project cost of Rs 10,601.40 crore with debt-equity ratio of 70:30 through a Joint Venture (JV).

The tentative overall time schedule for commissioning of Namrup-IV Project is 48 months, an official statement said.

The Cabinet also approved the National Fertilizers Ltd's (NFL) equity participation of 18 per cent 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.

In the proposed JV, the Assam government will hold 40 per cent, while BVFCL 11 per cent, Hindustan Urvarak & Rasayan Limited (HURL) 13 per cent, NFL 18 per cent and Oil India Limited (OIL) 18 per cent.

BVFCL's share of equity shall be in lieu of tangible assets.

"The project will increase the domestic urea production capacity in the country especially in the north-eastern region. It will meet the growing demand of urea fertilizers of north-east, Bihar, West Bengal, eastern Uttar Pradesh, and Jharkhand," the statement said.

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," the government said. PTI NKD MJH HVA

Source: PTI