Cabinet nod for Rs 100 cr grant-in-aid to BVFCL

Cabinet nod for Rs 100 cr grant-in-aid to BVFCL

The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved a proposal to give Rs 100 crore grant-in-aid to Assam-based state-run Brahmaputra Valley Fertilizer Corporation Ltd (BVFCL) for sustaining 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.

Further, 28,000 people get benefits indirectly by this establishment, it said, adding this will strengthen the ‘Aatmanirbhar Bharat’ campaign of the government.

Sharing reasons for granting aid to BVFCL, the government said 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.

In order to ensure the safe, sustainable and economic operation of the plants, certain equipment and machineries need to be replaced/overhauled.

The minimum functional repair to be undertaken for smoother operation of the plants with procurement of mechanical, electrical, instrumentation and catalyst items should attract an estimated expenditure of Rs 100 crore, it said.

BVFCL is situated in the north-east, which plays an important role in economic growth in the region.