PM unveils Rs 10,601-crore fertiliser plant in Assam, unit to be commissioned by 2030

New Delhi: Prime Minister Narendra Modi on Sunday laid the foundation stone of a Rs 10,601-crore brownfield ammonia-urea plant in Dibrugarh district of Assam, and asserted that it would usher in a new chapter of industrial progress in the region.

The facility – Assam Valley Fertiliser and Chemical Company Ltd (AVFCCL) – will have an annual urea production capacity of 12.7 lakh metric tonnes and the project is scheduled for commissioning in 2030.

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The PM, on the last day of his two-day Assam visit, laid the foundation stone of the plant here, located within the existing premises of the Brahmaputra Valley Fertiliser Corp Ltd (BVFCL).

After unveiling the project, Modi addressed a public rally, where he criticised the Congress for allegedly not modernising technology at fertiliser plants, and not doing enough to protect the interests of the farmer community.

Noting that it is a historic day for Assam and the entire northeast, he said the long-awaited dream of Namrup and Dibrugarh has been fulfilled, as a new chapter of industrial progress begins in the region.

"Around Rs 11,000 crore will be invested in the fertiliser project, which will produce more than 12 lakh metric tonnes of fertiliser annually. With production taking place locally, supply will be faster and logistic costs will be reduced," the PM said.

Emphasising that the Namrup plant will generate thousands of new opportunities for recruitment and self-employment, he said that associated work such as repair, supply and other related activities will also provide jobs to the youth.

"The Namrup fertiliser plant in Assam will become the epitome of the country's industrial growth. It is sad that the Congress did not make efforts to modernise the plant, and find solutions to problems faced by farmers," he said.

He said that Namrup had long been a centre of fertiliser production, and at one time, the fertiliser produced here strengthened the fields of the northeast and supported farmers' crops.

"Even when fertiliser supply was a challenge in many parts of the country, Namrup remained a source of hope for farmers. However, the technology of the old plants became outdated over time and the Congress government paid no attention," Modi alleged.

As a result, several units of the Namrup facility were “shut down, leaving farmers across the northeast distressed”, and their incomes hurt, he said.

"Among various agricultural welfare initiatives, it is essential to ensure a continuous supply of fertiliser to our farmers. This urea factory will fulfill that need," the Prime Minister said.

Modi said India will progress only if farmers prosper, and the BJP government has introduced several schemes to uplift them.

"Many fertiliser factories were closed during the Congress rule, but when we came to power, the BJP government established several new plants throughout the country," he said.

The PM also said that the Centre's palm oil mission will make the northeast self-sufficient in edible oil, and increase farmers' income in the coming days.

Highlighting several farmer-centric measures, he said that urea output in the country has been increased to 306 lakh metric tonnes from 225 lakh metric tonnes in 2014.

"India needs 380 lakh metric tonnes annually. We are moving towards eliminating this gap. The fertiliser that we import, we give subsidies on it so that our farmers do not feel the burden," Modi said.

He, however, cautioned farmers against spraying urea uncontrollably to get higher yields, as it affects the soil quality.

"We need to protect our mother earth. If we care and protect it, only then will it give us the fruits," Modi said.

"Funds are being directly transferred to bank accounts so that farmers do not have to wander for loans. So far, around Rs 4 lakh crore has been transferred to farmers' accounts under the PM Kisan Samman Nidhi," the PM said.

Modi said that earlier, farmers had to wait in long queues for urea, with police personnel often deployed at distribution centres, who sometimes resorted to lathicharge to maintain order.

"What the Congress government neglected, our government is committed to rebuilding with full dedication," he asserted.

In July this year, AVFCCL was incorporated at Namrup in Dibrugarh. The project was approved by the Union Cabinet in March this year.

AVFCCL is a joint venture among the Assam government, Oil India, National Fertilisers Ltd (NFL), Hindustan Urvarak & Rasayan Ltd (HURL) and BVFCL.

"The AVFCCL Namrup ammonia-urea project is being established as a modern, energy-efficient, world-class fertiliser complex with an annual urea production capacity of 12.7 lakh metric tonnes, at an estimated investment of Rs 10,601 crore," the company said in a statement.

It said this upcoming facility will play a pivotal role in meeting the fertiliser requirement of Assam, the northeast region, West Bengal, Bihar, Jharkhand and eastern Uttar Pradesh.

"Beyond fertiliser security, the project is expected to act as a major catalyst for industrial growth, employment generation and regional economic development, creating hundreds of direct jobs and thousands of indirect employment opportunities," AVFCCL said.

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