Guwahati: National Fertilizers Limited (NFL), a state-owned enterprise, will invest around Rs 572 crore to acquire an 18% equity stake in a proposed joint venture to establish a urea plant in Assam.
In a regulatory filing on Friday, the NFL confirmed that its board has approved the decision to enter into a Joint Venture Agreement with selected partner companies to develop the Namrup-IV Fertilizer Plant.
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The facility will be located within the existing premises of Brahmaputra Valley Fertilizer Corporation Limited (BVFCL).
The joint venture, which is currently in the process of being incorporated, will carry a total project cost of Rs 10,601.40 crore and will follow a debt-equity funding structure of 70:30. The Union Cabinet granted clearance for the project last month.
According to the investment structure, the Assam government will hold a 40% stake in the venture, while NFL and Oil India Limited (OIL) will each hold 18%. Hindustan Urvarak & Rasayan Limited (HURL) will control 13%, and BVFCL will contribute 11% through tangible assets in lieu of equity.
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The Namrup-IV plant will have an annual urea production capacity of 12.7 lakh tonnes. The joint venture aims to complete the project within 48 months from commencement.
Officials said the plant will significantly boost domestic urea production, particularly in the northeast, and help meet the growing fertilizer demand in Assam, Bihar, West Bengal, Eastern Uttar Pradesh, and Jharkhand.