The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday greenlit a Rs 10,601.4 crore project to establish a new brownfield Ammonia-Urea Complex at the Brahmaputra Valley Fertilizer Corporation Ltd (BVFCL) premises in Namrup, Assam.

With an annual urea production capacity of 12.7 lakh tonnes, the initiative aims to curb India’s reliance on imported fertilizers and advance self-sufficiency in this critical agricultural input.

The plant, to be developed through a joint venture (JV) with a 70:30 debt-equity ratio, is slated for completion within 48 months. The JV includes the Assam government (40% stake), BVFCL (11%, in lieu of tangible assets), Hindustan Urvarak & Rasayan Limited (HURL) (13%), National Fertilizers Ltd (NFL) (18%), and Oil India Limited (OIL) (18%).

Notably, the Cabinet relaxed Department of Public Enterprises guidelines to allow NFL’s 18% equity participation and approved an Inter-Ministerial Committee to oversee the project’s implementation.

The Namrup-IV unit will cater to the rising urea demand in Assam, the northeastern states, Bihar, West Bengal, eastern Uttar Pradesh, and Jharkhand, bolstering domestic production capacity. Designed for energy efficiency, the facility promises to reduce operational costs while generating direct and indirect employment opportunities in the region. “This project will enhance fertilizer availability in the northeast and beyond, supporting India’s vision of self-reliance in urea,” an official statement noted.

India, a major agricultural nation, imports a significant portion of its urea needs. The new plant aligns with the government’s push to revitalize domestic fertilizer production, following the revival of units like Gorakhpur and Ramagundam.

By leveraging local resources and modern technology, Namrup-IV is poised to strengthen agricultural productivity and economic growth in eastern India, marking a significant step toward fertilizer independence.