Centre okays Rs 100 crore 'Grant in Aid' to BVFCL in Namrup

* CM Sonowal welcomes Centre's decision on Namrup-based urea-manufacturing company

NEW DELHI: The CCEA (Cabinet Committee on Economic Affairs) chaired by Prime Minister Narendra Modi accorded approval to the proposal of the Department of Fertilizers for 'Grant in Aid' of Rs 100 crore to the BVFCL (Brahmaputra Valley Fertilizers Corporation Limited) in Namrup for sustaining operations of its urea-manufacturing units.

Meanwhile thanking the Prime Minister for approving the grant-in-aid, Chief Minister Sarbananda Sonowal said in a statement that the decision of the CCEA would give a huge boost to the Industry sector of the State and the 'Atmanirbhar Bharat' campaign of the Government of India (GoI).

BVFCL, Namrup is a PSU (Public Sector Undertaking) formed as per the Companies Act, under the administrative control of the Department of Fertilizers (DoF), Government of India. At present, the company is operating its two vintage plants viz., Namrup-ll and Namrup-lll in the premises of BVFCL in Namrup.

The BVFCL plays an important role in the economic growth of the region. The 'Grant in Aid' of Rs 100 crore to BVFCL will restore the urea production capacity of 3.90 lakh MT per annum and also ensure the timely availability of urea to Tea Industry & Farming Sector in Assam and also the north-eastern region.

The BVFCL will also continue the existing employment of about 580 employees on a permanent basis and another 1,500 persons on an ad-hoc basis. Further, 28,000 people also get benefits indirectly from this establishment. This will also strengthen the 'Atma Nirbhar Bharat' campaign of the Government of India.

Mentionably, 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.

In order to ensure the safe, sustainable and economic operation of these plants, certain equipment and machinery need to be replaced or overhauled. The minimum functional repair to be undertaken for smoother operation of these plants with the procurement of mechanical, electrical, instrumentation and catalyst items etc., shall attract an estimated expenditure of Rs 100 crore; and therefore, the Gol approved the 'Grant in Aid' of Rs 100 crore to BVFCL. (PIB)

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