PM Modi lays foundation for Rs 10,600 crore urea plant in Assam

Prime Minister Narendra Modi on Sunday laid the foundation stone for a major brownfield ammonia-urea plant in Dibrugarh district of Assam, marking a significant step in the country’s efforts to achieve self-reliance in fertiliser production.

The Rs 10,601-crore project, set to be commissioned in 2030, will add 12.7 lakh metric tonne to the nation’s annual urea production capacity through the Assam Valley Fertiliser and Chemical Company Ltd (AVFCCL). The new facility will be built within the existing premises of the Brahmaputra Valley Fertiliser Corporation (BVFCL) at Namrup.

The new plant follows the commissioning of six other urea plants over the past six years that cumulatively added 76.2 lakh metric tonnes to the nation's production capacity, reflecting the government's sustained focus on boosting domestic manufacturing under the New Investment Policy, 2012.

AVFCCL, incorporated at Namrup in July this year, operates as a joint venture among the Assam government, Oil India, National Fertilisers Ltd (NFL), Hindustan Urvarak & Rasayan Ltd (HURL), and BVFCL. The Union Cabinet had approved the project in March 2025, with a 70:30 debt-equity ratio.

The initiative comes as India continues to expand its fertiliser production base to reduce import dependence. Over the past decade, the country has witnessed steady growth in the sector, with total fertiliser production rising from 385.39 lakh metric tonnes in FY15 to 503.35 lakh metric tonnes in FY24.

India currently stands as the world's second-largest consumer and third-largest producer of fertilisers. In FY24, the country achieved a milestone by recording its highest-ever domestic urea production, crossing 314 lakh metric tonnes.

Calling it a big day for Assam and the Northeast, PM Modi announced the beginning of a new chapter in the region's industrial progress. “The dream that Namrup and Dibrugarh had been waiting for a long time is being fulfilled today,” he said at the foundation-laying ceremony.

The plant is expected to meet fertiliser requirements not only for Assam but also for neighbouring states, while generating substantial employment opportunities and catalysing regional economic development.

Union Minister of Ports, Shipping and Waterways, Sarbananda Sonowal, earlier highlighted that the expansion would transform BVFCL, the oldest fertiliser unit in Northeast, into a major production hub. The enhanced capacity will not only serve farmers across the region but also enable exports to neighbouring countries such as Bhutan and Myanmar.