Economy

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

Our Bureau New Delhi | Updated on February 10, 2021

Will enable the company sustain operations of its urea manufacturing units

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.

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Published on February 10, 2021
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