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Cabinet okays grant-in-aid of Rs 100 cr to BVFCL

Wednesday, 10 Feb 2021
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The Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi accorded approval to the proposal of the Department of Fertilisers for grant-in-aid of Rs 100 crore to the Brahmaputra Valley Fertilisers Corporation (BVFCL), Namrup (Assam) to sustain operations of its urea manufacturing units. 
 
BVFCL, Namrup, is a Public Sector Undertaking (PSU) formed as per the Companies Act, under the administrative control of the Department of Fertilisers (DoF), government of India. 
 
Presently, the company is operating its two vintage plants, namely Namrup-II and Namrup-III in the premises of BVFCL in Namrup, Assam.
 
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 reasonable production level from the existing units in a cost-effective manner because of their old and obsolete technology. 
 
In order to ensure 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 procurement of mechanical, electrical, instrumentation and catalyst items, etc will attract an estimated expenditure of Rs100 crore and therefore the Centre has approved grant-in-aid of Rs 100 crore to BVFCL. 
 
BVFCL is situated at 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 lakh tpa and ensure timely availability of urea to the tea industry and the farming sector in the entire North-Eastern region specially Assam. 
 
It will also continue the existing employment of about 580 employees on permanent basis and another 1,500 persons on ad-hoc basis. 
 
Further, 28,000 people get benefits indirectly by this establishment. This will also strengthen Atmanirbhar Bharat campaign.
 
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