BVFC_Ammonia Urea_ProjectsMonitor

Namrup Fertiliser_Ammonia Urea_ProjectsMonitor The Principal Secretary to PM, Pulok Chatterji deliberated on setting up of a new Brownfield fertilizer plant at Namrup. Starting the discussions, the fertilizer department officials informed the Secretary that out of three plants of Brahmaputra Valley Fertilizer Corporation Ltd (BVFCL) at Namrup, only two are functional, one at 50 per cent capacity and other at 100 per cent. The accumulated losses of BVFCL as on March 31, 2013 are Rs.811.11 crore and net worth is Rs. 445.28 crore.

Energy consumption of both these plants is very high and there is a need for establishing a new Brownfield Ammonia-Urea plant of larger size (8.64 LMTPA urea) with the present available quantity of 1.72 MMSCMD natural gas, which is provided by OIL, under an agreement valid up to 31.3.2022.

An independent study conducted in 2011 recommended for setting up a new plant to replace the existing plants and financial restructuring of the company.

The proposal of financial restructuring is under circulation for inter-ministerial consultations. Both OIL and Assam government have expressed willingness for having equity of 26 per cent and 11 per cent respectively in the project. The Assam government has agreed to enter into an agreement to the proposal of formation of Joint Venture controlled by private partner with the condition that interest of BVFCL employees should be protected by JV. It was further noted that the State government does not have any objection to transfer of the land of BVFCL to new JV.

The Department officials emphasized the need for early formation of the JV for establishment of the proposed complex at Namrup. They suggested that OIL and Assam government should be considered as JV partner on nomination basis. Further, BVFCL should be allowed to keep equity up to 11 per cent based on the valuation of useful assets and the balance 52 per cent equity holding may be finalized through bidding route.

The Principal Secretary directed the Department to bring a note for CCEA by November 2013 seeking approval of the indicated JV structure and other related issues. The Department will also finalize clear timelines to execute the Project, at least up to bidding stage, and inform the CCEA accordingly.

Print pagePDF pageEmail page


  1. Dear

    This is to introduce our company as TKB COMMISSIONERS AGENTS, We are one of
    the largest and most successful business brokerage Companies in E.
    Africa region with business brokers conveniently located throughout
    Africa. We specialize in businesses and government projects such as
    valuations,construction and many others

    I was commissioned and given this opportunity by one of the ministry
    official who directs the tender board committee to source out any
    reliable company which can bid and tender for the construction
    Fertilizers & Chemicals AND fertilizers plant project

    However this project is still departmental though its funds were
    allocated in this financial year .

    We look forward to receiving your reply and the accompanying capacity
    to carry on the project.

    We would be grateful if you inform us by replying on the above
    mentioned e-mail.

    Ndyomugenyi Robert


    PO BOX 1188 Kampala
    Plot 30 Mbarara main Street.

Comments are closed.