Central Govt Approved Rs.100 Crore Grant to Brahmaputra Valley Fertilizers Co.

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The Cabinet Committee on Economic Affairs chaired by Prime Minister Shri Narendra Modi 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 it’s urea manufacturing units.

BVFCL, Namrup is a Public Sector Undertaking formed as per Companies Act, under the administrative control of the Department of Fertilizers (DoF), Government of India. At present, the Company is operating its two vintage plants viz. Namrup-ll and Namrup-lll in the premises of BVFCL in Namrup, 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 level from the existing units in a cost-effective manner because of their old & obsolete technology. In order to ensure the safe, sustainable and economic operation of the plants, certain equipment and machinery need to be replaced/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, Gol approved Grant in Aid of Rs. 100 crores to BVFCL.

BVFCL is situated at North-Eastern part of India, which 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 Tea Industry & Farming Sector in the entire North Eastern region specially Assam. It will also continue the existing employment of about 580 employees on permanent basis and another 1500 persons on ad-hoc basis.  Further, 28000 people get benefits indirectly by this establishment. This will also strengthen the ‘ATMA NIRBHAR BHARAT campaign of the Government of India.

Subsidy Given up on LPG cylinders

Oil Marketing Companies (OMCs) have reported that as on 01.02.2021, 1.08 crore LPG consumers have given up their subsidy.

The prices of petroleum products including LPG in the country are linked to the prices of respective products in the international market. However, the Government continues to modulate the effective price to consumer for Subsidised Domestic LPG and the consumers get the products at subsidised rate. This information was given by the Union Minister for Petroleum and Natural Gas Shri Dharmendra Pradhan in a written reply in the Rajya Sabha today.

The subsidy on Subsidised Domestic LPG increase/decrease with the increase/decrease in the product price in international market and decision of Government on subsidy.


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