The Cabinet Committee on Economic Affairs on Wednesday approved grant-in-aid of Rs 100 crore to the Brahmaputra Valley Fertilizers Corporation Limited (BVFCL) at Namrup in upper Assam’s Dibrugarh district to sustain operations of its urea manufacturing units.

The Cabinet meeting, chaired by Prime Minister Narendra Modi, accorded approval to the proposal of the department of fertilizers under the central government.

BVFCL Namrup is a Public Sector Undertaking (PSU) formed as per the Companies Act under the administrative control of the department of fertilizers.

Assam chief minister Sarbananda Sonowal has welcomed the decision of the Cabinet Committee on Economic Affairs.

In a statement on Wednesday, Sonowal while thanking the PM for approving the grant-in-aid of Rs. 100 crore for BVFCL said the decision of the Cabinet committee of economic affairs would give a huge boost to the industry sector of the state and the ‘Atma Nirbhar Bharat’ campaign of the Government of India.

The company currently is operating its two vintage plants – Namrup-ll and Namrup-lll – in the premises of BVFCL at Namrup.

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 the 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 shall attract an estimated expenditure of Rs.100 crore and so, the Centre has approved grant-in-aid of Rs. 100 crore to BVFCL.

BVFCL plays an important role in the economic growth of the region.

The grant-in-aid of Rs 100 crore to BVFCL is expected to restore the urea production capacity of 3.90 lakh metric tonne per annum and ensure timely availability of urea to tea industry & farming sector in the entire Northeastern region specially Assam.

It will also continue the existing employment of about 580 employees on a permanent basis and another 1500 persons on an ad-hoc basis. Further, 28,000 people get benefits indirectly from this establishment.

The grant-in-aid will strengthen the Atma Nirbhar Bharat campaign of the Indian government.

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