BY OUR STAFF REPORTER
GUWAHATI, May 21: The Union Cabinet chaired by Prime Minister rendra Modi today gave its approval for setting up of a new Ammonia-Urea complex of 8.64 lakh metric tonnes annual capacity with an estimated investment of Rs. 4,500 crore at mrup through Public Private Partnership (PPP) route by a joint venture (JV).
In the proposed joint venture, a PSU of Department of Fertilizers mely Brahmaputra Valley Fertilizer Corporation Limited (BVFCL), the Government of Assam and Oil India Limited (another PSU) shall have 11%, 11% and 26% equity holding respectively and balance 52% by private/public sector entity(ies) which would be inducted through a competitive bidding process.
The cabinet also approved the fincial restructuring of BVFCL by waiving off entire cumulative interest (Rs. 774.61 crore as on March 31, 2015) till date accrued on Central government loans, and a loan of Rs. 21.96 crore and conversion of GOI loans of Rs. 594.71 crore as interest free loans. It will eble the BVFCL to participate as equity partner in this project and will sustain the operation of the existing plants during the interim period till the new plant comes into operation.
The setting up of a new Ammonia-Urea complex will meet the growing demand for urea in the Northeast, Bihar, West Bengal and Jharkhand. It will also ease the pressure on infrastructure due to long distance transportation of urea from western and central regions and thereby saving in government subsidy on freight. The proposed plant will open new avenues of employment for the people of the North-East.
The new plant will be highly energy efficient unit of intertiol standard with latest technology and with same amount of tural gas available to the existing units. The production of urea from the new unit will be more than doubled — from 3.6 to 8.64 lakh metric tonnes annually. With this, India is likely to start export of urea.
The entire production of urea from this unit shall be neem-coated so that benefits of neem coating are available to the farmers of the Northeastern region also.