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Union Cabinet gave its approval for setting up Ammonia-Urea Complex at Namrup in Assam

May 22, 2015 13:00 IST

The Union Cabinet on 21 May 2015 gave its approval for setting up of a new Ammonia-Urea Complex at Namrup in Assam. The complex will be set up on Public-Private Partnership (PPP) mode by a joint venture (JV).

In the proposed JV, PSU Brahmaputra Valley Fertilizer Corporation Limited (BVFCL), Government of Assam and Oil India Limited (OIL) shall have 11 percent, 11 percent and 26 percent equity holding respectively and balance 52 percent by private/public sector entity (entities) which would be inducted through a competitive bidding process.

Features of the Ammonia-Urea Complex
• It will be of 8.64 lakh metric tonnes annual capacity and will be operationalised with an investment of 4500 crore rupees.
• The plant will be highly energy efficient unit of international standard with latest technology and with same amount of natural gas available to the existing units, the production of urea from the new unit will be more than double that is 3.6 to 8.64 lakh metric tonnes annually.
• The entire production of urea from this unit shall be neem coated so that benefits of neem coating are available to the farmers of the North-Eastern region also.

Importance of the Ammonia-Urea Complex

It will meet the growing demand of urea in the North-East Region, Bihar, West Bengal and Jharkhand and will ease the pressure on infrastructure due to long distance transportation of Urea from Western and Central Regions and thereby saving in government subsidy on freight.

It will accelerate the economic development of the region by opening up of new avenues for the people of the North-East in terms of employment and increased agriculture production.

At present, India is importing around 80 lakh metric tonnes of urea to meet the domestic demand of 310 lakh metric tonnes per anuum. With the operationalisation of this new unit along with the revival of the five units as approved by the Union Cabinet in recent months namely Talcher (Odisha), Ramagundam (Telangna), Barauni (Bihar), Gorakhpur (Uttar Pradesh) and Sindri (Jharkand) of Fertilizer Corporation India Limited (FCIL) India is likely to start export of urea which will save about 600 crore rupees annually for government due to reduction in cost of production and import substitution.

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