Govt to set up a new Ammonia-Urea Complex in Assam

To meet the fertilizer demand of North-East, the Government will soon set up a new Ammonia-Urea Complex at Namrup in Assam.
Govt to set up a new Ammonia-Urea Complex in Assam

The Union Cabinet gave its approval for setting up of a new Ammonia-Urea Complex of 8.64 Lakh Metric Tonnes annual capacity with an estimated investment of Rs. 4500 crore at Namrup in Assam on Public-Private-Partnership (PPP) route by a Joint Venture (JV). In the proposed JV, a PSU, Brahmaputra Valley Fertilizer Corporation Limited (BVFCL), Government of Assam and Oil India Limited will have 11 percent, 11 percent and 26 percent equity holding respectively and balance 52 percent by private/public sector entities which would be inducted through a competitive bidding process.

The Cabinet also approved the financial restructuring of BVFCL by waiving off entire cumulative interest, Rs. 774.61 crore as on 31.03.2015, till date accrued on GOI loans and a loan of Rs. 21.96 crore and conversion of GOI loans of Rs. 594.71 crore as interest free loan. It will enable the BVFCL to participate as equity partner in this project and will sustain the operation of the existing plants during the interim period till the new plant comes into operation.

The setting up of a new Ammonia-Urea Complex will meet the growing demand of urea of North-East, Bihar, West Bengal and Jharkhand. It will also ease the pressure on infrastructure due to long distance transportation of Urea from Western and Central Regions and thereby saving in subsidy on freight.

The annual consumption of Urea in the country is approx. 310 LMT, out of which 230 LMT is produced indigenously and rest is imported. To enhance the production of urea indigenously, the Government has earlier approved the revival of Talcher (Odisha) and Ramagundam (Telangna) units of Fertilizer Corporation of India Limited (FCIL) by PSUs through ‘nomination route’ and Barauni (Bihar) unit of Hindustan Fertilizer Corporation Limited (HFCL) and Gorakhpur (UP) unit of FCIL through ‘bidding route’. These four units will produce about 52 lakh MT of urea annually.

The new plant will be highly energy efficient unit of international standard with latest technology and with same amount of natural gas available to the existing units. The entire production of urea from this unit will be neem coated so that benefits of neem coating are available to the farmers of the North-Eastern region also.  

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