Guwahati, Dec 19: The Assam Cabinet has approved the purchase of a 40% equity stake in the Brahmaputra Valley Fertilizer Corporation Limited (BVFCL) to facilitate the establishment of the Rs 10,601 crore Namrup Fertilizer Plant-IV.
The move is seen as a major step toward reviving the region’s fertilizer industry, which has been non-operational since 2020, and bolstering Assam’s agricultural sector.
“The Central Government will hold a 60% equity share in the new plant, while the Assam Government will manage the remaining 40%. This joint effort aims to set up the fourth unit of BVFCL,” Chief Minister Himanta Biswa Sarma told reporters after the cabinet meeting.
“Once operational, the plant’s production capacity will increase significantly from the current 1.80 lakh MT to 12 lakh MT of urea and ammonia annually,” Sarma added.
BVFCL, the only urea manufacturing unit in eastern India, has faced challenges due to ageing infrastructure. The Namrup-III unit, operational for 35 years, has long outlived its design life of 15-20 years. The new plant aims to secure the future of fertilizer production in the region and address growing demands.
Efforts to modernize BVFCL began in 201 when a proposal was floated to set up ammonia-urea complexes to meet fertilizer demand across Northeast India and neighbouring regions. However, progress remained stalled for years.
In February 2021, the Cabinet Committee on Economic Affairs approved a grant-in-aid of Rs 100 crore to BVFCL to restore urea production capacity to 3.90 lakh MT annually.
“Purchasing a 40% stake was a challenging decision for a state like Assam, but it was necessary for the welfare of the people,” Sarma emphasized.
In 2022, Sarma also pledged to raise the Assam government’s investment in BVFCL from 11% to 26% and urged greater capital investment from Oil India Limited.
The revival of BVFCL through the establishment of Namrup-IV is expected to address fertilizer shortages in the region, supporting agricultural needs in Assam, Bihar, Rajasthan, Jharkhand, and the Northeast. The plant will also cater to the needs of neighbouring countries like Nepal and Bhutan. Additionally, the project is projected to generate significant employment opportunities, enhance the regional economy, and strengthen the agricultural sector.
Read: Two drug suppliers, including a minor, arrested in Shillong
WATCH:
Find latest news from every corner of Northeast India at hubnetwork.in, your online source for breaking news, video coverage.
Also, Follow us on-
Twitter-twitter.com/nemediahub
Youtube channel- www.youtube.com/@NortheastMediaHub2020
Instagram- www.instagram.com/ne_media_hub
Download our app from playstore – Northeast Media Hub
 to facilitate the establishment of the Rs 10,601 crore Namrup Fertilizer Plant-IV.){kind=link}