PM Modi lays foundation stone of Rs 10,601 crore fertiliser plant in Assam

Prime Minister Narendra Modi on Sunday laid the foundation stone of a Rs 10,601-crore brownfield ammonia-urea fertiliser plant in Assam’s Dibrugarh district, with the unit scheduled to be commissioned by 2030.

The facility, to be set up by Assam Valley Fertiliser and Chemical Company Ltd (AVFCCL), will have an annual urea production capacity of 12.7 lakh metric tonnes. The project is coming up within the existing premises of Brahmaputra Valley Fertiliser Corporation Ltd (BVFCL) at Namrup.

The foundation stone was laid on the final day of Modi’s two-day visit to Assam, during which he unveiled multiple development projects worth Rs 15,600 crore, months ahead of the state assembly elections next year.

AVFCCL was incorporated in July this year at Namrup in Dibrugarh district. The project received approval from the Union Cabinet in March.

AVFCCL is a joint venture involving the Assam government, Oil India, National Fertilisers Ltd, Hindustan Urvarak & Rasayan Ltd and BVFCL.

“The AVFCCL Namrup ammonia-urea project is being established as a modern, energy-efficient, world-class fertiliser complex with an annual urea production capacity of 12.7 lakh metric tonnes, at an estimated investment of Rs 10,601 crore,” the company said in a statement.

According to the statement, the upcoming plant will help meet fertiliser requirements across Assam, the northeastern region, West Bengal, Bihar, Jharkhand and eastern Uttar Pradesh.

“Beyond fertiliser security, the project is expected to act as a major catalyst for industrial growth, employment generation and regional economic development, creating hundreds of direct jobs and thousands of indirect employment opportunities,” AVFCCL said.

The company said the foundation stone laying marked the revival of Namrup’s role in India’s gas-based fertiliser industry and would open a new phase of growth and development for the region.

The Bhoomi Poojan ceremony was attended by Assam Governor Lakshman Prasad Acharya, Chief Minister Himanta Biswa Sarma, along with ministers, MPs, MLAs, senior officials and representatives of stakeholder organisations.

BVFCL, a state-run company, is the only urea manufacturing facility in eastern India. It began production in January 1969 as part of Hindustan Fertiliser Corporation Ltd and was formed in April 2002 after the Namrup unit was hived off.

The company operates under the administrative control of the Ministry of Chemicals and Fertilisers and is fully owned by the Government of India.

Officials said BVFCL was the first facility in India to use associated natural gas as a raw material for nitrogenous fertiliser production and has played a key role in supplying urea to farmers in the northeastern region.

According to the Department of Fertilisers website, BVFCL currently produces neem-coated urea and organic fertilisers, including liquid bio fertiliser and vermi compost, under the brand name ‘Mukta’.

BVFCL has two operational ammonia-urea units at Namrup with smaller capacities, established in 1976 and 1987.