CCEA approves grant to keep Assam’s BVFCL urea units running

The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved a proposal to give a Rs 100 crore

Published: 11th February 2021 08:45 AM  |   Last Updated: 11th February 2021 08:45 AM   |  A+A-

By Express News Service

NEW DELHI:  The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved a proposal to give a Rs 100 crore grant-in-aid to Assam-based state-run Brahmaputra Valley Fertilizer Corporation Ltd (BVFCL) for sustaining the operation of its urea manufacturing units. 

“The grant-in-aid of Rs 100 crore to BVFCL will restore the urea production capacity of 3.90 lakh tonne per annum and ensure timely availability of urea to the tea industry and farming sector in the entire North Eastern region specially Assam,” the government said in a statement.

“It will also continue the existing employment of about 580 employees on a permanent basis and another 1,500 persons on an ad-hoc basis,” it added. Around 28,000 people get benefits indirectly through this establishment. 

According to the Centre, the company is currently operating two vintage plants at Namrup in Assam. “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 reasonable production levels from the existing units in a cost effective manner because of their old and obsolete technology,” it said, adding that in order to ensure their safe operation, certain equipment and machineries need to be replaced. 


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