The Planning Commission has suggested that the Department of Fertilizers may
explore the possibility of open bidding and Expression of Interest (EoI) for
equity participation from private sector companies in connection with the revival
of Namrup Fertilizer plant in Assam.

According to sources in the Department of Chemicals and Petrochemicals (DCPC), Planning Commission is of the view that the funding pattern for the project has to
be finalised before seeking \'in-principle\' approval for the revival.

A Techno-Economic Feasibility Report (TEFR) for installation of a new brown field
Ammonia-Urea Complex was forwarded to Planning Commission in May 2011 for
examination, in-principle approval and allocation of fund in the 12th Five Year
Plan.

The Planning Commission advised Department of Fertilizers for forming a joint
venture for installation of the new plant Namrup-IV.

In this regard, several discussions were held with Oil India Limited (OIL), GNVFCL and government of Assam for equity participation in the new project.

The total cost of the new plant has been estimated to be Rs. 3311.00 crore with
loan to equity in the ratio of 2:1.

Since Brahmaputra Valley Fertilizer Corporation Limited (BVFCL) is a loss-making
company and does not have the requisite fund for installation of a new Brownfield
plant and in order to maintain the PSU character of the proposed plant, Planning
Commission was requested again in March this year for allocation of Rs. 695.52
crore in Plan outlay of 12th Five Year Plan for the project.

\"The Planning Commission responded that the funding pattern has to be finalised
before seeking ‘in-principle’ approval for the project and hence Department of
Fertilizers may explore the possibility of open bidding and EoI for equity
participation from private sector companies,\" the DCPC said.

BVFCL was incorporated on April 5, 2002 with the hived-off Namrup units of
Hindustan Fertilizer Corporation Ltd. It is fully owned by the government of
India. The company with its corporate and registered office at Namrup in Dibrugarh
district has two urea manufacturing units, namely Namrup-II and Namrup-III at the
same location.

The unit Namrup III with its ammonia, urea and a 2í—15 MW captive power generation plant went into commercial production on October 1, 1987. Namrup-II with ammonia and urea plants went into commercial production on October 1976. Namrup-I plants, comprising one sulphuric acid, one ammonium sulphate and one 167 TPD urea-ammonia plants had to be gradually phased out due to economic reasons.

After the closure of the FCI and HFC group of plants in eastern India, BVFCL
remained the lone urea manufacturing unit in the northeast. It largely meets the
urea requirement of the entire northeast as well as some parts of north Bengal and
eastern Bihar.