Cabinet Approves ₹10,601 Crore Namrup IV Fertilizer Plant in Assam

New Delhi- The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the establishment of a new Brownfield Ammonia-Urea Complex at Brahmaputra Valley Fertilizer Corporation Limited (BVFCL) in Namrup, Assam. The project, known as Namrup IV, will have an annual production capacity of 12.7 Lakh Metric Tonnes (LMT) of urea and a total estimated cost of ₹10,601.40 crore. The plant will be set up through a Joint Venture (JV) under the New Investment Policy, 2012, with amendments from October 2014. The debt-equity ratio for the project has been set at 70:30, and commissioning is expected within 48 months.

The equity structure for the JV has been outlined as follows: the Government of Assam will hold a 40% stake, BVFCL will have an 11% share in lieu of tangible assets, Hindustan Urvarak & Rasayan Limited (HURL) will contribute 13%, National Fertilizers Limited (NFL) will hold 18% — exceeding limits prescribed by the Department of Public Enterprises (DPE) guidelines — and Oil India Limited (OIL) will also hold 18%. To ensure smooth implementation, the Cabinet has further approved the formation of an Inter-Ministerial Committee (IMC) to oversee the project.

The Namrup IV plant is expected to significantly enhance India’s domestic urea production capacity, especially in the North-Eastern region. It will cater to the growing fertilizer demand across Assam, Bihar, West Bengal, Eastern Uttar Pradesh, and Jharkhand. Additionally, the new plant will feature advanced technology, making it more energy-efficient compared to its predecessors.

Apart from boosting fertilizer production, the project is set to create substantial employment opportunities, both directly and indirectly, for the local population. The initiative aligns with the government’s broader vision of achieving self-reliance in urea production, ensuring a stable supply for farmers, and enhancing agricultural productivity across the country.