The tentative overall schedule for the commissioning of the Namrup-IV Project is 48 months.
The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved a proposal to set up a new brownfield Ammonia-Urea complex of 12.7 lakh metric tonnes (LMT) annual capacity of urea production within the existing premises of Brahmaputra Valley Fertilizer Corporation Limited (BVFCL) in Namrup, Assam. The project, estimated to cost Rs 10,601.40 crore, will have a debt-equity ratio of 70:30 and will be implemented through a joint venture (JV) under the New Investment Policy, 2012, along with its amendments on October 7, 2014.
The tentative overall schedule for the commissioning of the Namrup-IV Project is 48 months.
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Additionally, 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; and the constitution of an Inter-Ministerial Committee (IMC) to oversee the process of setting up of Namrup-IV Fertilizer Plant.
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In the proposed JV, the equity pattern will be as under: Government of Assam: 40 per cent, Brahmaputra Valley Fertilizer Corporation Limited (BVFCL): 11 per cent, Hindustan Urvarak and Rasayan Limited (HURL): 13 per cent, National Fertilizers Limited (NFL): 18 per cent,
Oil India Limited (OIL):18 per cent.
BVFCL’s share of equity will 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 for urea fertilizers in North East, Bihar, West Bengal, Eastern Uttar Pradesh, and Jharkhand. 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 will help achieve the vision of self-reliance in urea in the country.
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