New Delhi, March 19
The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday, approved the proposal for setting up a new brownfield ammonia-urea complex in Assam with an annual capacity of producing 12.7 lakh metric tonnes (LMT) of urea with an estimated total project cost of Rs.10,601.40 crore
The new project will come up on the existing premises of the Brahmaputra Valley Fertiliser Corporation Limited (BVFCL) at Namrup in Assam. It will have a debt to equity ratio of 70:30 through a Joint Venture (JV), under the New Investment Policy, 2012 read with its amendments on October 7, 2014. The tentative overall time schedule for the commissioning of the Namrup-IV project is 48 months, according to an official statement issued after the Cabinet meeting.
Additionally, the Cabinet also approved the National Fertilisers Limited'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 Fertiliser Plant.
In the proposed JV, the Assam government will have 40 per cent equity, the BVFCL will have an 11 per cent share, the Hindustan Urvarak & Rasayan Limited (HURL) will hold a 13 per cent stake while National Fertilisers Limited (NFL) and Oil India Limited (OIL) will each own an 18 per cent share, according to the statement.
The 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 northeastern region. It will meet the growing demand for urea fertilisers in the North East, Bihar, West Bengal, eastern Uttar Pradesh, and Jharkhand.
The establishment of Namrup-IV will be more energy efficient. It will also open avenues for additional direct and indirect employment opportunities for the people of the area. Besides, the project will help achieve the vision of self-reliance in urea in the country, the statement added.
- IANS