CCEA approves grant-in-aid of ₹100 crore to Brahmaputra Valley Fertilizers Corporation in Assam

The Cabinet Committee on Economic Affairs (CCEA) approved the proposal of the Department of Fertilizers for grant-in-aid of ₹100 crore to Brahmaputra Valley Fertilizers Corporation Ltd (BVFCL), Namrup. This will enable the company sustain operations of it’s urea manufacturing units.

“The grant in aid of ₹100 crore to BVFCL will restore the urea production capacity of 3.90 lakh mt per annum and ensure timely availability of urea to tea industry & farming sector in the entire North-Eastern region, specially Assam. It will also continue the existing employment of about 580 employees on a permanent basis and another 1,500 persons on an ad-hoc basis,” an official statement from the CCEA said. Per official estimates, 28,000 people are also indirectly benefited from BVFCL.

Two vintage plants

BVFCL, Namrup is a public sector undertaking, under the administrative control of the Department of Fertilizers. At present, the company is operating its two vintage plants in 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 levels from the existing units in a cost effective manner because of their old & obsolete technology,” the statement added.

For the safe, sustainable and viable operations 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. shall attract an estimated expenditure of ₹100 crore,” the official statement added.