Centre Approves Rs 10,600 Cr to Set Up Brownfield Ammonia-Urea Complex in Namrup in Assam, CM Calls It a ‘Watershed Moment’

The Brownfield Ammonia-Urea Complex will be commissioned in 4 years

In a major boost to development in Assam, the Union Cabinet today approved Rs 10,600 crore for the establishment of a new Brownfield Ammonia-Urea Complex at Brahmaputra Valley Fertilizer Corporation Limited in Namrup, which will have an annual urea production capacity of 12.7 lakh metric tons.

The project will be financed through a joint venture with a debt-equity ratio of 70:30 under the New Investment Policy, 2012, as amended on October 7, 2014.

Tentatively, the plant will be commissioned in 4 years.

The Cabinet has also approved National Fertilizers Limited’s participation in the equity structure at 18 per cent, exceeding the limits set by the Department of Public Enterprises (DPE) guidelines. Additionally, an Inter-Ministerial Committee (IMC) will be formed to oversee the establishment of the Namrup-IV Fertiliser Plant.

Under the proposed JV, the equity distribution will be 40 per cent with the Assam Government, BVFCL will have 11 per cent, Hindustan Urvarak and Rasayan Limited will own 13 per cent, and both NFL and Oil India Limited (OIL) will each have an 18 per cent stake. BVFCL’s equity contribution will be in the form of tangible assets.

The project is expected to enhance domestic urea production, particularly in the northeastern region, and meet the rising demand for fertilisers in states such as Bihar, West Bengal, Eastern Uttar Pradesh, and Jharkhand.

The Namrup-IV unit will operate with greater energy efficiency and create both direct and indirect employment opportunities in the region. Additionally, the project will contribute to India’s goal of achieving self-sufficiency in urea production.

Assam Chief Minister Himanta Biswa Sarma hailed the decision, calling it a “watershed moment” for the state.

“This is a watershed moment for Assam. The ₹10,600cr Namrup Fertilizer Unit is one of the biggest investment proposals to completely fructify post #AdvantageAssam2. We’re extremely grateful to Hon’ble Prime Minister Shri @narendramodi ji for unlocking Assam’s true potential,” CM Sarma tweeted.

This is a watershed moment for Assam. The ₹10,600cr Namrup Fertilizer Unit is one of the biggest investment proposals to completely fructify post #AdvantageAssam2.

We're extremely grateful to Hon’ble Prime Minister Shri @narendramodi ji for unlocking Assam's true potential. https://t.co/gPD5p5HsEh

— Himanta Biswa Sarma (@himantabiswa) March 19, 2025

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