Modi Launches Rs 106 Billion Urea Plant In Assam

The facility will be developed by Assam Valley Fertiliser and Chemical Company within the existing premises of Brahmaputra Valley Fertiliser Corporation at Namrup. Once operational, the plant will have an annual urea production capacity of 1.27 million metric tonnes and is scheduled to be commissioned by 2030.

Addressing a public gathering after unveiling the project at the end of his two-day visit to Assam, the Prime Minister said the long-pending aspirations of Namrup and Dibrugarh had finally been fulfilled. He described the project as a historic step that would usher in a new chapter of industrial progress for Assam and the entire Northeast.

Modi said the investment of nearly Rs 110 billion would help ensure faster fertiliser availability while lowering logistics costs through local production. He added that the project would create thousands of employment and self-employment opportunities, including in ancillary services such as repair, supply and logistics, benefiting local youth.

Criticising previous governments, the Prime Minister said outdated technology had led to the gradual shutdown of fertiliser units at Namrup, adversely affecting farmers across the Northeast and reducing incomes. He said modernisation had been neglected for years despite Namrup’s importance as a major fertiliser hub in the past.

Highlighting the need for uninterrupted fertiliser supply, Modi said the new urea plant would support farmers’ requirements and improve agricultural productivity. He noted that national urea production has risen from 22.5 million metric tonnes in 2014 to about 30.6 million metric tonnes currently, against an annual requirement of nearly 38 million metric tonnes. Efforts are under way to bridge this gap while continuing subsidies to shield farmers from the cost of imports.

The Prime Minister also cautioned against excessive use of urea, warning that indiscriminate application could damage soil health. Emphasising farmer welfare, he said around Rs 4 trillion has been transferred directly to farmers’ bank accounts under the PM Kisan Samman Nidhi scheme. He added that the government’s palm oil mission would help the Northeast become self-sufficient in edible oils and raise farm incomes in the coming years.

The Namrup project is expected to play a crucial role in strengthening fertiliser security, supporting farmers and accelerating industrial growth across Assam and the Northeast.