NFL to Invest Rs 572 Crore for 18% Stake in Namrup-IV Urea Plant Joint Venture in Assam

Assam Namrup-IV Urea Plant: The estimated cost of acquiring the 18 per cent stake is Rs 572.45 crore, reports Business Standard.

State-owned National Fertilizers Ltd (NFL) is set to acquire an 18 per cent stake for approximately Rs 572 crore in a proposed joint venture aimed at establishing a new Ammonia-Urea plant in Namrup, Assam, according to a Business Standard report.

In a regulatory filing on Friday, the NFL stated that its board has given the green light to enter into a Joint Venture Agreement with other nominated companies for setting up the Namrup-IV Fertilizer Plant. The estimated cost of acquiring the 18 per cent stake is Rs 572.45 crore, reports Business Standard.

The Namrup-IV project is part of the Union Cabinet’s recently approved proposal to develop a new Brownfield Ammonia-Urea Complex with an annual production capacity of 12.7 lakh tonnes. This plant will be established within the existing premises of Brahmaputra Valley Fertilizer Corporation Ltd (BVFCL) in Namrup, Assam. The total estimated cost of the project stands at Rs 10,601.40 crore, with a debt-equity ratio of 70:30.

The joint venture will include several major stakeholders: the Assam government will hold a 40 per cent stake, BVFCL 11 per cent, Hindustan Urvarak & Rasayan Limited (HURL) 13 per cent, NFL 18 per cent, and Oil India Limited (OIL) 18 per cent. BVFCL’s equity contribution will be in the form of tangible assets.

Scheduled for commissioning within 48 months, the Namrup-IV project is expected to boost domestic urea production, particularly catering to the agricultural needs of Assam, the north-eastern region, as well as Bihar, West Bengal, eastern Uttar Pradesh, and Jharkhand.

Also Read: NDA set to sweep Assam Panchayat Elections: CM Himanta Biswa Sarma

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