National Fertilizers gets approval for 18% equity participation in Namrup-IV Fertilizer Plant
Central government approved National Fertilizers Limited's 18% equity participation and established the Inter-Ministerial Committee for Namrup-IV Fertilizer Plant JV with contributions from Assam Govt, BVFCL, HURL, and Oil India.
The central government has approved the National Fertilizers Limited (NFL)’s equity participation of 18% in relaxation to the limits prescribed in Department of Public Enterprises (DPE) guidelines, and the constitution of an Inter-Ministerial Committee (IMC) to oversee the process of setting up of Namrup-IV Fertilizer Plant.
In the proposed JV, the equity pattern will be 40% of the Government of Assam, Brahmaputra Valley Fertilizer Corporation Limited (BVFCL) with 11%, Hindustan Urvarak & Rasayan Limited (HURL) with 13%, National Fertilizers Limited with 18% and Oil India Limited will consist of 18%.
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The project will increase the domestic Urea production capacity in the country, especially in the North-Eastern region. It will meet the growing demand of Urea fertilizers of North East, Bihar, West Bengal, Eastern Uttar Pradesh, and Jharkhand, the release stated.
Read Also : Mazagon Dock safeguards 2,800 Schoolgirls with Cervical Cancer VaccinationThe government will set up a new Brownfield Ammonia-Urea Complex of 12.7 Lakh Metric Tonnes (LMT) annual capacity of Urea production within the existing premises of Brahmaputra Valley Fertilizer Corporation Limited (BVFCL), Namrup Assam, with an estimated total project cost of Rs.10,601.40 Crore with Debt Equity ratio of 70:30 through a Joint Venture stated above.
The tentative overall time schedule for the commissioning of the Namrup-IV Project is 48 months.
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