Union Cabinet approves Rs 100 cr as grant-in-aid to fertiliser plant in Assam



The Cabinet Committee on Economic Affairs, chaired by Prime Minister, on Wednesday accorded approval to the proposal of the department of fertilisers for a grant-in-aid of Rs 100 crore to Brahmaputra Valley Fertiliser Corporation Limited (BVFCL) at Namrup in Upper Assam to sustain operations of its urea manufacturing units.

BVFCL, Namrup is a public sector undertaking under the administrative control of the department of fertilisers. At present, the company is operating its two vintage plants – Namrup-II and Namrup-III.

“However, despite being the first gas-based urea manufacturing unit in the country and having all the infrastructure and feedstock availability, it has been difficult to maintain reasonable production level from the existing units in a cost-effective manner because of obsolete technology,” an official statement said.

In order to ensure the safe, sustainable and economic operation of the plants, certain equipment and machineries need to be replaced or overhauled.

Hence, the central government has approved the grant in aid to BVFCL to meet the expenditure for minimum functional repair to be undertaken for smoother operation of the plants with the procurement of mechanical, electrical, instrumentation and catalyst items.

It may be mentioned that Assam industries and commerce minister Chandra Mohan Patowary last month visited BVFCL in Namrup and informed officials that the issue of maintenance requirements of units II and III of the plant has been pursued at the central government level.

Situated in Northeastern India, BVFCL plays an important role in economic growth in the region.

“The grant in aid of Rs 100 crore to BVFCL will restore the urea production capacity of 3.90 lakh metric tonnes (MT) per annum and ensure timely availability of urea to the tea industry and farming sector of the region, especially Assam,” the statement said.

The company has 580 employees on a permanent basis and another 1500 persons on an ad-hoc basis.

(Edited by Laxmi Chyrmang)