Cabinet approves Rs 100 crore grant-in-aid for BVFCL for technological overhaul

New Delhi: The Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi has accorded its approval on Wednesday to the proposal of the Department of Fertilizers for grant-in-aid of Rs 100 crore to Brahmaputra Valley Fertilizers Corporation Limited (BVFCL), Namrup (Assam) to sustain operations of its urea manufacturing units. BVFCL is a fertilizer PSU under the administrative control of the Department of Fertilizers. At present, the company is operating its two vintage plants viz. Namrup-ll and Namrup-lll in the premises of BVFCL in Namrup, Assam. 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 a 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 replaced or overhauled. 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 crore and therefore, the government has approved grant-in-aid of Rs 100 crore to BVFCL, said an official statement.

ALSO READ: NFL clocks highest-ever production, produces 9.99 lakh MT urea in Q3 of FY 2020-21

BVFCL is situated in the north-eastern part of India, 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 Lakh MT per annum and ensure timely availability of Urea to Tea Industry & Farming Sector in the entire north-eastern region, especially Assam. It 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 get benefits indirectly from this establishment.

(PSU Watch– India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy is now on Telegram. Join PSU Watch Channel in your Telegram and stay updated)