Cabinet approves Rs 100 Cr worth grant-in-aid to BVFCL Assam
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New Delhi, Feb 11: The Cabinet Committee on Economic Affairs accorded approval to the proposal of the Department of Fertilizers for Grant-in-aid of Rs 100 crore to Assam based Brahmaputra Valley Fertilizers Corporation Limited (BVFCL), to sustain operations of it's urea manufacturing units. Prime Minister Narendra Modi chaired the Cabinet Committee on Economic Affairs.
The BVFCL, Namrup is a Public Sector Undertaking formed as per the Companies Act, under the administrative control of the Department of Fertilizers (DoF), Govt of India. At present, the Company is operating its two vintage plants of Namrup II and Namrup III in the premises of BVFCL in Assam's Namrup. Despite being the first gas based urea manufacturing unit in India and having all the infrastructure and feed stock 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 the plants, certain equipment and machineries need to be overhauled. The minimum functional repair to be undertaken for smoother operation of the plants with procurement of mechanical, electrical, instrumentation and catalyst items shall attract an estimated expenditure of Rs 100 crores. Therefore, the Central govt has approved Grant in Aid of Rs 100 crores to BVFCL.
The BVFCL is situated at North Eastern region of the country, which 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 Lac MT per annum and ensure timely availability of Urea to Tea Industry and Farming Sector in the entire North Eastern region, especially in Assam. It will also continue the existing employment of about 580 employees on permanent basis and another 1500 persons on ad-hoc basis. Further, 28000 people get benefits indirectly by the establishment, which will also strengthen the Atmanirbhar Bharat campaign of the Govt of India.