In a landmark decision, the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the establishment of a new urea plant in Namrup, Assam, with an estimated investment of Rs 10,601.4 crore. This initiative aims to enhance domestic urea production, reduce dependency on imports, and promote self-sufficiency in the agricultural sector.
Project Highlights
- Location and Capacity: The plant will be set up within the premises of Brahmaputra Valley Fertilizer Corporation Limited (BVFCL) in Namrup and will have an annual production capacity of 12.7 lakh metric tonnes of urea.
- Investment Structure: The project will be financed through a joint venture with a debt-equity ratio of 70:30. Key stakeholders include the Government of Assam (40%), BVFCL (11%), Hindustan Urvarak & Rasayan Limited (13%), National Fertilizers Limited (18%), and Oil India Limited (18%).
- Timeline: The plant, named Namrup-IV, is expected to be commissioned within 48 months.
Benefits for the Region
The Namrup-IV project is poised to significantly boost the agricultural economy of the northeastern states, as well as Bihar, West Bengal, eastern Uttar Pradesh, and Jharkhand. It will also create direct and indirect employment opportunities, contributing to the socio-economic development of the region.
Additionally, the new plant will operate with greater energy efficiency, aligning with the government’s vision of sustainable development. The initiative underscores the government’s commitment to strengthening the agricultural sector and achieving self-reliance in urea production.
This development marks a significant step forward in addressing the growing demand for fertilizers in India while fostering economic growth in the Northeast. The project is expected to have a transformative impact on the region’s agricultural landscape.
