Cabinet approves ₹10,601 crore Namrup-IV brownfield ammonia-urea complex in Assam
The Union Cabinet on 19 March 2025 approved a 12.7 LMT-a-year brownfield ammonia-urea complex (Namrup-IV) within the premises of Brahmaputra Valley Fertilizer Corporation Ltd at Namrup, Assam, at an estimated cost of ₹10,601.40 crore.
Summary
The Union Cabinet chaired by Prime Minister Narendra Modi on 19 March 2025 approved setting up a new brownfield ammonia-urea complex of 12.7 lakh metric tonnes annual urea capacity within the existing premises of Brahmaputra Valley Fertilizer Corporation Limited (BVFCL) at Namrup, Assam. The project will cost an estimated ₹10,601.40 crore with a 70:30 debt-equity ratio, through a joint venture under the New Investment Policy, 2012, and is scheduled to be commissioned in 48 months. The JV equity is: Government of Assam 40%, National Fertilizers Ltd 18%, Oil India Ltd 18%, Hindustan Urvarak & Rasayan Ltd 13% and BVFCL 11% (in lieu of tangible assets). The Cabinet allowed NFL's 18% stake in relaxation of DPE limits and set up an Inter-Ministerial Committee to oversee the project, which will serve urea demand in the North East, Bihar, West Bengal, eastern Uttar Pradesh and Jharkhand.
Key facts
- Date
- 19 March 2025
- Place
- BVFCL premises, Namrup, Assam
- Capacity
- 12.7 LMT urea a year
- Cost
- ₹10,601.40 crore; debt-equity 70:30
- Largest stake
- Government of Assam, 40%
- Other partners
- NFL 18%, OIL 18%, HURL 13%, BVFCL 11%
- Commissioning
- 48 months
Practice MCQs 3 questions
Which partner holds the largest equity share in the joint venture for the Namrup-IV ammonia-urea complex approved by the Cabinet on 19 March 2025?
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Correct answer: D — Government of Assam
The Government of Assam holds 40%, followed by NFL and OIL (18% each), HURL (13%) and BVFCL (11%).
What is the estimated total project cost of the Namrup-IV ammonia-urea complex approved by the Union Cabinet in March 2025?
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Correct answer: A — ₹10,601.40 crore
The estimated total project cost is ₹10,601.40 crore, with a 70:30 debt-equity ratio.
Consider the following statements about the Namrup-IV project approved in March 2025: 1. Oil India Limited holds 18% equity in the joint venture. 2. Brahmaputra Valley Fertilizer Corporation Limited contributes its 11% equity in cash. Which of the above is/are correct?
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Correct answer: A — 1 only
OIL holds 18% equity. BVFCL's 11% equity is in lieu of tangible assets, not cash, so statement 2 is wrong.