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

New Delhi: 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 percent 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 percent, while BVFCL 11 percent, Hindustan Urvarak & Rasayan Limited (HURL) 13 percent, NFL 18 percent and Oil India Limited (OIL) 18 percent.