Project to have Debt Equity ratio of 70:30 through a JV
The Cabinet has approved a Rs.10,601.40 crore proposal for setting up of a Brownfield Ammonia-Urea Complex of 12.7 Lakh Metric Tonnes (LMT) annual capacity of Urea production within the existing premises of Brahmaputra Valley Fertilizer Corporation Limited (BVFCL) at Namrup, Assam.
The project will have a Debt Equity ratio of 70:30 through a Joint Venture (JV), under the New Investment Policy, 2012 read with its amendments on 7th October, 2014.
The tentative overall time schedule for commissioning of Namrup-IV Project is 48 months, the cabinet said on 19 Mar.
Additionally, the Cabinet also approved the National Fertilizers Limited (NFL)’s equity participation of 18% in relaxation to the limits prescribed in Department of Public Enterprises (DPE) guidelines; and constitution of an Inter-Ministerial Committee (IMC) to oversee the process of setting up of Namrup-IV Fertilizer Plant.
In the proposed JV, equity pattern will be as under:
(i) Government of Assam: 40%
(ii) Brahmaputra Valley Fertilizer Corporation Limited (BVFCL): 11%
(iii) Hindustan Urvarak & Rasayan Limited (HURL): 13%
(iv) National Fertilizers Limited (NFL): 18%
(v) Oil India Limited (OIL): 18%
BVFCL’s share of equity shall be in lieu of tangible assets.
The project will increase the domestic Urea production capacity in the country especially in the North-Eastern region. It will meet the growing demand of Urea fertilizers of North East, Bihar, West Bengal, Eastern Uttar Pradesh and Jharkhand https://www.makeinindia.com/home/.
The establishment of Namrup-IV unit will be more energy efficient. It will also open avenues for additional direct and indirect employment opportunity to the people of the area. It shall help achieve the vision of self-reliance in Urea in the country. Fiinews.com
