Assam to get Rs 4500 cr ammonia-urea complex on PPP
Updated: May 22, 2015 01:00:07pm
New Delhi, May 22 (KNN) Assam will set up new ammonia - urea complex of 8.64 lakh metric tonnes annual capacity with an estimated investment of Rs 4500 crore from the central government at Namrup in Assam on public private partnership (PPP) mode. It will meet the growing demand of urea in North-East, Bihar, West Bengal and Jharkhand.
“In the proposed JV, a PSU of Department of Fertilizers namely Brahmaputra Valley Fertilizer Corporation Limited (BVFCL), Government of Assam and Oil India Limited (another PSU) shall have 11 per cent, 11 cent and 26 per cent equity holding respectively and balance 52 per cent by private/public sector entity which would be inducted through a competitive bidding process,” said a release from the Ministry of Chemicals and Fertilizers.
The Union Cabinet chaired by the Prime Minister, Narendra Modi on Thursday gave its approval for setting up the complex.
The project will ease the pressure on infrastructure due to long distance transportation of Urea from Western and Central Regions and thereby saving in govt. subsidy on freight. It will accelerate the economic development of the region. The proposed plant will open new avenues for the people of the North-East.
The new plant will be highly energy efficient unit of international standard with latest technology and with same amount of natural gas available to the existing units, the production of urea from the new unit will be more than double i.e. 3.6 to 8.64 lakh Metric Tonnes annually.
With this, India is likely to start export of urea. Government will save around Rs 600 crore annually due to reduction in cost of production and import substitution. The entire production of urea from this unit shall be neem coated so that benefits of neem coating are available to the farmers of the North-Eastern region also. (KNN/ST)
“In the proposed JV, a PSU of Department of Fertilizers namely Brahmaputra Valley Fertilizer Corporation Limited (BVFCL), Government of Assam and Oil India Limited (another PSU) shall have 11 per cent, 11 cent and 26 per cent equity holding respectively and balance 52 per cent by private/public sector entity which would be inducted through a competitive bidding process,” said a release from the Ministry of Chemicals and Fertilizers.
The Union Cabinet chaired by the Prime Minister, Narendra Modi on Thursday gave its approval for setting up the complex.
The project will ease the pressure on infrastructure due to long distance transportation of Urea from Western and Central Regions and thereby saving in govt. subsidy on freight. It will accelerate the economic development of the region. The proposed plant will open new avenues for the people of the North-East.
The new plant will be highly energy efficient unit of international standard with latest technology and with same amount of natural gas available to the existing units, the production of urea from the new unit will be more than double i.e. 3.6 to 8.64 lakh Metric Tonnes annually.
With this, India is likely to start export of urea. Government will save around Rs 600 crore annually due to reduction in cost of production and import substitution. The entire production of urea from this unit shall be neem coated so that benefits of neem coating are available to the farmers of the North-Eastern region also. (KNN/ST)
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