The Union Cabinet has approved the establishing of a urea plant in Assam with an estimated cost of Rs 10,601.4 crore.

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the proposal for setting up a new brownfield Ammonia-Urea Complex of 12.7 lakh tonnes annual capacity of urea production within the existing premises of Brahmaputra Valley Fertilizer Corporation Ltd (BVFCL), Namrup Assam, Information & Broadcasting Minister Ashwini Vaishnaw told reporters.    

The plant will be established with an estimated total project cost of Rs 10,601.40 crore with a debt-equity ratio of 70:30 through a Joint Venture (JV).     

The tentative overall schedule for the commissioning of the Namrup-IV Project is 48 months, an official statement said.
     

The Cabinet also approved the National Fertilizers Ltd's (NFL) equity participation of 18 per cent in relaxation to the limits prescribed in Department of Public Enterprises (DPE) guidelines, and the constitution of an Inter-Ministerial Committee (IMC) to oversee the process of setting up of Namrup-IV Fertilizer Plant.