Setting up of a new Ammonia-Urea Complex at Namrup in Assam on Public Private Partnership (PPP) basis
Financial restructuring of Brahmaputra Valley Fertilizer Corporation Limited
The Union
Cabinet chaired by the Prime Minister, Shri Narendra Modi, today gave
its approval for setting up of a new Ammonia-Urea Complex of 8.64 Lakh
Metric Tonnes annual capacity with an estimated investment of Rs. 4500
crore at Namrup in Assam on Public Private Partnership (PPP) route by a
Joint Venture (JV). 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%, 11% and 26% equity holding respectively and balance 52% by
private/public sector entity(ies) which would be inducted through a
competitive bidding process.
The Cabinet also approved the financial restructuring of BVFCL by
waiving off entire cumulative interest (Rs. 774.61 crore as on
31.03.2015) till date accrued on GOI loans & a loan of Rs. 21.96
crore and conversion of GOI loans of Rs. 594.71 crore as interest free
loan. It will enable the BVFCL to participate as equity partner in this
project and will sustain the operation of the existing plants during the
interim period till the new plant comes into operation.
The setting up of a new Ammonia-Urea Complex will meet the growing
demand of urea of North-East, Bihar, West Bengal and Jharkhand. It will
also 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 annual consumption of Urea in the country is approx. 310 LMT, out of
which 230 LMT is produced indigenously and rest is imported. To enhance
the production of urea indigenously, Govt. has earlier approved the
revival of Talcher (Odisha) & Ramagundam (Telangna) units of
Fertilizer Corporation of India Limited (FCIL) by PSUs through
‘nomination route’ and Barauni unit of Hindustan Fertilizer Corporation
Limited (HFCL) & Gorakhpur unit of FCIL through ‘bidding route’.
These four units will produce about 52 lakh MT of urea annually.
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. Govt.
would save about 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.
***
AKT/SH
(Release ID :121911)
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