Cabinet approves Rs 100 cr grant-in-aid for Brahmaputra Valley Fertilizer in Assam

at 4:10 pm
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New Delhi (NVI): The Union Cabinet chaired by Prime Minister Narendra Modi today approved grant-in-aid of Rs 100 crore to Brahmaputra Valley Fertilizers Corporation Ltd (BVFCL) in Assam, to help sustain operations of its urea manufacturing units.

According to an official statement, “The grant to BVFCL will restore the urea production capacity of 3.90 Lac million tonnes (MT) per annum and ensure timely availability of Urea to Tea Industry & Farming Sector in the entire North Eastern region, especially Assam.”

It will also continue the existing employment of about 580 employees in the company on permanent basis and another 1,500 persons on ad-hoc basis.

Apart from this, 28,000 people will get benefits indirectly by this establishment. This will also strengthen the ‘Atma Nirbhar Bharat campaign of the Government of India.

“BVFCL, Namrup is a public sector company under the administrative control of the Department of Fertilizers (DoF) and operates two vintage plants namely Namrup-ll and Namrup-lll in the premises of BVFCL in Namrup, Assam,” the Cabinet statement said.

The company is situated at North-eastern part of India, which plays an important role of economic growth in the region.

It is the first gas-based urea manufacturing unit in the country and has all the infrastructure availability, but 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.

“To ensure the safe, sustainable and economic operation of the plants, certain equipment and machineries need to be replaced or overhauled,” the statement read.

It added that 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 Rs 100 crores. Therefore, the government of India approved grant-in-aid to BVFCL.