In a major step to revive Assam’s fertilizer industry and strengthen its agricultural sector, the Assam Cabinet approved the purchase of a 40% equity stake in Brahmaputra Valley Fertilizer Corporation Limited (BVFCL). Consequently, this decision clears the way for establishing the Rs 10,601 crore Namrup Fertilizer Plant-IV.
Government Partnership for Namrup-IV Project
“The Central Government will hold a 60% equity share in the new plant, while the Assam Government will manage the remaining 40%,” Chief Minister Himanta Biswa Sarma announced after the cabinet meeting. Thus, this partnership will build the fourth unit of BVFCL.
The project will significantly boost BVFCL’s production capacity, increasing it from 1.80 lakh metric tons (MT) to 12 lakh MT of urea and ammonia annually. Moreover, Sarma added, “Once operational, the plant will meet the growing fertilizer demands of Assam and neighboring regions.”
Reviving a Struggling Industry
BVFCL, the sole urea manufacturing unit in eastern India, has faced operational challenges due to outdated infrastructure. Specifically, the Namrup-III unit, operational for 35 years, has surpassed its design life of 15-20 years. Therefore, the new Namrup-IV plant will ensure the long-term viability of fertilizer production in the region.
Efforts to modernize BVFCL began in 2011 with proposals to establish ammonia-urea complexes. However, progress stalled for nearly a decade. In February 2021, the Cabinet Committee on Economic Affairs approved a Rs 100 crore grant-in-aid for BVFCL. Consequently, this funding restored its urea production capacity to 3.90 lakh MT annually.
Strategic Investment for Growth
Chief Minister Sarma acknowledged the challenges in Assam’s decision to acquire a 40% stake in BVFCL. “It was a bold but necessary decision for the welfare of the people,” he stated. Furthermore, in 2022, Sarma pledged to increase Assam’s investment in BVFCL from 11% to 26% and urged Oil India Limited to contribute more capital.
As a result, the Namrup-IV plant’s revival will address fertilizer shortages in Assam, Bihar, Rajasthan, Jharkhand, and the Northeast. Additionally, its output will support agricultural needs in neighboring countries like Nepal and Bhutan.
Economic and Employment Boost
Beyond agriculture, the project will create substantial employment opportunities. Furthermore, it will boost the regional economy and ensure long-term sustainability for Assam’s agricultural sector.
A New Chapter for Fertilizer Production
With joint efforts from the Central and Assam governments, the Namrup-IV project launches a new chapter in fertilizer production for the Northeast. Consequently, it strengthens India’s commitment to bolstering its agricultural backbone.
