Pre-poll sop for Assam: Cabinet approves grant-in-aid of Rs 100 crore to BVFCL
GUWAHATI: The Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi on Wednesday accorded approval 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.
The approval came ahead of the Assam Assembly election slated in April-May.
BVFCL, Namrup is a Public Sector Undertaking formed as per the Companies Act, under the administrative control of the Department of Fertilizers (DoF), Government of India.
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 crores and therefore, the Centre approved the grant in aid of Rs. 100 crores to BVFCL.
At present, the Company is operating its two vintage plants viz. Namrup-ll and Namrup-lll in the premises of BVFCL in Namrup, Assam.
BVFCL plays an important role of economic growth in the region.
The grant in aid of Rs. 100 crore to BVFCL will restore the urea production capacity of 3.90 Lac MT per annum and ensure timely availability of Urea to the tea industry and farming sector in the entire northeastern region especially Assam.
It will also continue the existing employment of about 580 employees on a permanent basis and another 1500 persons on an ad-hoc basis. Further, 28000 people get benefits indirectly from this establishment.