New Delhi:

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the proposal for setting up 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, Information & Broadcasting Minister Ashwini Vaishnaw told reporters.

The Union Cabinet on Wednesday approved the 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 the import of this key crop nutrient and make India self-sufficient.

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 (JV). The tentative overall schedule for the commissioning of the 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 the 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 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," the government said.

"The project will increase the domestic urea production capacity in the country, especially in the northeastern 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 Centre, in the last 10 years, has taken many steps to increase the domestic production of urea, including the revival of a few closed manufacturing plants.

These steps have facilitated the increase of Urea production from 225 Lakh tonne per annum during 2014-15 to a record Urea output of 314.09 Lakh tonnes during the 2023-24 fiscal. India imports around 50-60 tonnes of urea every year to meet domestic demands.

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