Dibrugarh, Dec 20: The Namrup Fertilizer Surakshya United Forum has welcomed the announcement of a new ₹11,000-crore urea fertilizer plant in Namrup, saying the project will boost industrial growth in Assam.
However, the forum has urged the Centre to ensure the continued functioning of the ageing Namrup-III plant to protect jobs and ongoing production.
Forum president Tileswar Bora said the Union government’s decision marks a major milestone for the state’s fertilizer sector, particularly with Prime Minister Narendra Modi scheduled to lay the foundation stone on December 21.
“We are very happy that the new urea plant, with an annual production capacity of 1.2 million metric tonnes, is coming up in Namrup. But we are also concerned about the Namrup-III plant, which has already crossed its lifespan,” Bora said.
He noted that the Namrup-III unit has been operational for 38 years and is currently producing 900 metric tonnes of urea per day, despite structural fatigue.
A recent survey by Project Development India Limited (PDIL) found that the plant could run for another ten years if major repair work is undertaken.
“We have submitted a ₹500-crore revival proposal to the Ministry of Chemicals and Fertilizers. Over 400 workers are directly dependent on the existing plant, and if it suddenly breaks down, their livelihoods will be at stake,” Bora added.
The forum urged the government to release funds for repair and maintenance, emphasising that the new plant will take six to seven years to become operational.
“Until then, the Namrup-III plant remains crucial for BVFCL workers. We hope the government will address the issue urgently,” Bora said.
Bora also highlighted the national shortage of urea, saying India currently faces a deficit of around 80 lakh metric tonnes, forcing farmers to buy fertilizer at higher market rates and increasing reliance on imports.
He thanked MLA Taranga Gogoi for supporting efforts to revive the existing unit.
New project to reshape fertilizer production
The new plant will be set up under the Assam Valley Fertiliser and Chemical Company Limited (AVFCCL) at an estimated cost of ₹10,600–₹11,000 crore.
AVFCCL Managing Director Sib Prasad Mohanty said the existing BVFCL facility produces about 0.2 million metric tonnes annually, while the new plant will have a capacity of 1.27 million metric tonnes per year.
The shareholding pattern will include:
40% – Assam Government
18% – Oil India Limited and National Fertilisers Limited
13% – Hindustan Urvarak & Rasayan Limited (HURL)
11% – BVFCL
BVFCL will provide land and infrastructure, while the other partners will infuse capital.
The plant is expected to be completed within four years, generating direct employment for 425 people and indirect employment for nearly 2,500.
Mohanty said existing BVFCL employees will not lose their jobs and will be absorbed into the new company.
Like the current operation, the new facility will also export urea to Nepal, Bhutan and Myanmar.
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