Union Cabinet clears Rs 10,601 crore Namrup-IV ammonia-urea plant to boost fertilizer production

Syllad | The Rising MeghalayaMarch 19, 2025

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the establishment of a new Rs 10,601.40 crore Brownfield Ammonia-Urea Complex with an annual production capacity of 12.7 lakh metric tonnes (LMT) at Brahmaputra Valley Fertilizer Corporation Limited (BVFCL) in Namrup.

The project will be implemented under a joint venture (JV) model, with a debt-equity ratio of 70:30, following the New Investment Policy, 2012, and its amendments in 2014. The estimated timeline for commissioning the Namrup-IV Project is 48 months.

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.

Additionally, the Union Cabinet has approved the formation of an Inter-Ministerial Committee (IMC) to oversee the plant’s setup and progress.

The Namrup-IV unit will boost domestic urea production, reducing reliance on imports and addressing fertilizer demand in Assam, Northeast India, Bihar, West Bengal, Eastern Uttar Pradesh, and Jharkhand. The plant will be more energy-efficient and will create significant direct and indirect employment opportunities in the region, supporting the vision of self-reliance in fertilizer production.

Welcoming the approval, Assam Chief Minister Himanta Biswa Sarma took to X (formerly Twitter) and wrote: “On behalf of the people of Assam, we are extremely grateful to Hon’ble Prime Minister for his relentless efforts to establish the North East as Viksit Bharat’s growth engine.”

Union Minister Sarbananda Sonowal also hailed the decision, emphasizing its long-term benefits for the region. He stated: “This landmark project will not only strengthen fertilizer security in the Northeast but also drive industrial growth, agriculture, and economic prosperity for our farmers. With no other Ammonia-Urea plant in the region, this initiative will reduce transportation costs, secure future demand, and generate employment. Additionally, it will leverage Assam’s natural gas resources and proximity to key markets such as Myanmar, Bangladesh, and Bhutan.”