Assam to set up 4th unit of Namrup fertilizer plant

29 October 2018

The Centre has agreed to set up the fourth plant of the ailing Brahmaputra Valley Fertiliser Corporation Limited (BVFCL) at Namrup in upper Assam's Dibrugarh district.

Fertilizer plant
Source: Google

BVFCL is the lone fertilizer-manufacturing plant in the entire Northeast region and produces and supplies urea to the farmers and tea gardens of the entire nation at a subsidised rate.

Established in 1969, the BVFCL has three units, Namrup I, II and III. The generation capacity of the plant has gone down due to the ageing factor of these chemical plant which has a maximum life span of 15 years.

Once considered one of the best fertiliser factories of the country, the BVFCL of late is struggling to stay afloat with dipping production of urea.

Despite the approval of the installation of a new plant with a production capacity of 8.646 metric tonnes per annum and modelling the joint venture as a public-private partnership on May 5, 2015, the Central government could not attract investment. After the failed attempt to generate funds, government agencies initiated the revamping process and set up the joint venture, the fourth plant of the BVFCL in Namrup.

The Rastriya Chemicals and Ferilizers and Oil India Limited took stakes of 52% and 26%, respectively, and the Assam government and the BVFCL shared stakes of 11% each, as a measure to set up the new unit. However, the project, whose cost has been put at Rs. 4,500 crore, had not seen any development as far as its setting up was concerned.

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