The Union Cabinet on Wednesday approved setting up of a urea plant with an estimated cost of Rs 10,601.4 crore in Assam to reduce import of this key crop nutrient and make India self-sufficient.
During a press briefing, Union Minister Ashwini Vaishnaw announced the approval of the proposal for setting up a new brownfield ammonia-urea complex of 12.7 lakh tonnes of annual capacity of urea production within the existing premises of Brahmaputra Valley Fertiliser Corporation Ltd., or BVFCL, in Assam's Namrup.
Vaishnaw noted that the plant will be established with an estimated total project cost of Rs 10,601.40 crore with a debt-equity ratio of 70:30 through a joint venture.
"The tentative overall time schedule for commissioning of the Namrup-IV Project is 48 months," he said.
The Cabinet also approved National Fertilisers Ltd's equity participation of 18% in relation to the limits prescribed in Department of Public Enterprises guidelines and the constitution of an Inter-Ministerial Committee to oversee the process of setting up the Namrup-IV Fertiliser Plant.
Vaishnaw highlighted that as per the proposed JV, the Assam government will hold 40%, while BVFCL will hold 11%, Hindustan Urvarak & Rasayan Ltd. will hold 13%, NFL will hold 18% and Oil India Ltd. will hold 18%. 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 northeastern region. It will meet the growing demand for urea fertilisers in the northeast, Bihar, West Bengal, eastern Uttar Pradesh, and Jharkhand," he said.
The establishment of the Namrup-IV unit will be more energy efficient. It will also open avenues for additional direct and indirect employment opportunities for the people of the area.
"It shall help achieve the vision of self-reliance in urea in the country," he said.
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