The Cabinet Committee on Economic Affairs (CCEA) on Wednesday accorded approval to the proposal of the Department of Fertilizers for grant-in-aid of Rs 100 crore to Brahmaputra Valley Fertilizers Corporation Limited (BVFCL), Namrup, in Assam to sustain operations of its urea manufacturing units.

BVFCL, Namrup, is a public sector undertaking under the administrative control of the Department of Fertilizers (DoF).

At present, the Company is operating its two vintage plants – Namrup-ll and Namrup-lll in the premises of BVFCL in Namrup, Assam.

An official release said that despite being the first gas-based urea manufacturing unit in India and having all the infrastructure and feedstock availability, 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.

It said certain equipment and machinery need to be replaced or overhauled to ensure the safe, sustainable and economic operation of the plants.

“The minimum functional repair to be undertaken for smoother operation of the plants with the procurement of mechanical, electrical, instrumentation and catalyst items etc. shall attract an estimated expenditure of Rs 100 crores and therefore, Gol approved Grant in Aid of Rs. 100 crores to BVFCL,” the release said.

It said that the grant-in-aid will restore the urea production capacity of 3.90 lakh MT per annum and ensure timely availability of urea to tea industry and farming sector in Assam and North Eastern Region. (ANI)