The grant will restore the urea production capacity of 3.90 Lac MT per annum.
The Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi has recently accorded approval to the proposal of the Department of Fertilizers for Grant-in-aid of Rs 100 crore to Brahmaputra Valley Fertilizers Corporation Limited (BVFCL), Namrup (Assam) to sustain operations of its urea manufacturing units.
BVFCL, Namrup is a Public Sector Undertaking formed as per the Companies Act, under the administrative control of the Department of Fertilizers (DoF), Government of India. Despite being the first gas-based urea manufacturing unit in India and having all the infrastructure and feedstock availability, it has been difficult to maintain a reasonable production level from the existing units in a cost-effective manner because of their old & obsolete technology.
In order to ensure the safe, sustainable, and economic operation of the plants, certain equipment and machineries need to be replaced/overhauled. The minimum functional repair to be undertaken for smoother operation of the plants with the procurement of mechanical, electrical, instrumentation, and catalyst items etc. shall attract an estimated expenditure of Rs100 crores and therefore, Gol approved Grant in Aid of Rs 100 crores to BVFCL.
BVFCL is situated at the North-Eastern part of India, which plays an important role of economic growth in the region. The grant in aid of Rs 100 crore to BVFCL will restore the urea production capacity of 3.90 Lac MT per annum and ensure timely availability of Urea to Tea Industry & Farming Sector in the entire North-Eastern region especially Assam.
