Guwahati: State-owned National Fertilizers Ltd (NFL) is set to acquire an 18% stake in a proposed joint venture to establish a urea plant in Assam.
The company’s board has given its consent to enter into a joint venture agreement with other nominated companies to form a joint venture company for setting up a new Ammonia-Urea Complex at Namrup, Assam.
The cost of acquisition of the 18% shareholding is estimated at approximately ₹572.45 crore. The stakeholding pattern in the joint venture will be as follows:
– Assam Government: 40%
– Brahmaputra Valley Fertilizer Corporation Ltd (BVFCL): 11% (in lieu of tangible assets)
– Hindustan Urvarak & Rasayan Limited (HURL): 13%
– National Fertilizers Ltd (NFL): 18%
– Oil India Limited (OIL): 18%
The proposed project involves setting up a new Brownfield Ammonia-Urea Complex with an annual capacity of 12.7 lakh tonnes of urea production within the existing premises of BVFCL, Namrup, Assam. The estimated total project cost is ₹10,601.40 crore with a debt-equity ratio of 70:30.
The project is expected to increase domestic urea production capacity, particularly in the north-eastern region, and meet the growing demand for urea in the north-east, Bihar, West Bengal, Eastern Uttar Pradesh, and Jharkhand. The tentative commissioning schedule for the project is 48 months.
Read More: No Nationwide Satellite-Based Tolling Implementation from May 1, Clarifies MoRTH