Union Cabinet approves Rs 10,601-Cr Namrup IV Fertilizer plant; to be operational in 4 yrs
The plant will be set up with a debt-equity ratio of 70:30 through a joint venture (JV) under the New Investment Policy, 2012.;
A file photo of Brahmaputra Valley Fertilizer Corporation Ltd (BVFCL) in Namrup. (Photo: X)
Guwahati, Mar 20: The union cabinet chaired by Prime Minister Narendra Modi on Wednesday approved the proposal for the setting up of a brownfield ammonia-urea complex of 12.7 lakh metric tonnes (LMT) annual capacity of urea production within the existing premises of the Brahmaputra Valley Fertilizer Corporation Limited (BVFCL), Namrup.
The plant will be set up 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) under the New Investment Policy, 2012. The tentative overall time schedule for commissioning of the Namrup IV project is 48 months, a statement said.
Additionally, the cabinet also approved 18 per cent equity participation of the National Fertilizer Limited in relaxation to the limits prescribed in the Department of Public Enterprises (DPE) guidelines and the constitution of an inter-ministerial committee (IMC) to oversee the process of setting up the Namrup IV fertilizer plant.
In the proposed JV, the Government of Assam will have 40 per cent equity, 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 project will increase the domestic urea production capacity, especially in the northeastern region. It will meet the growing demand for urea fertilizers of the northeast, Bihar West Bengal, eastern Uttar Pradesh and Jharkhand,” the statement said.
By
Staff Reporter
