New Delhi: Oil India Limited (OIL) has taken a significant step towards boosting fertilizer production in Northeast India by forming a new joint venture (JV) to establish the Namrup IV Ammonia-Urea Complex in Assam. The newly incorporated company, Assam Valley Fertilizer and Chemical Company Limited (AVFCCL), marks a collaborative effort between the Government of Assam, OIL, National Fertilizers Limited (NFL), Hindustan Urvarak & Rasayan Limited (HURL), and Brahmaputra Valley Fertilizer Corporation Limited (BVFCL).
Formation of Assam Valley Fertilizer and Chemical Company Limited (AVFCCL)
Incorporated on July 25, AVFCCL is positioned as the driving force behind the modernization and expansion of Assam’s fertilizer infrastructure. This initiative is expected to address the increasing demand for urea in the Northeast region and beyond.
Oil India Limited holds an 18% equity stake in AVFCCL, having subscribed to 18,000 equity shares at Rs 10 each, amounting to an initial investment of Rs 1.8 lakh. The total subscribed capital of AVFCCL stands at Rs 10 lakh, comprising 1,00,000 equity shares.
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Strategic Alignment with National Goals
The joint venture aligns with the Government of India’s broader vision of achieving self-sufficiency in urea production, reducing dependence on imports, and strengthening the nation’s agricultural backbone. The Department of Fertilizers, under the Ministry of Chemicals and Fertilizers, supports this project, emphasizing its significance in bolstering food security.
Economic and Employment Impact
Beyond enhancing fertilizer availability, the Namrup IV Fertilizer Plant is expected to act as a catalyst for economic development in Assam. It will generate employment opportunities and contribute to the industrial growth of the region, reinforcing the state’s role in India’s agricultural and chemical sectors.
A Collaborative Push for Agri-Infrastructure Development
AVFCCL’s establishment is a testament to the growing collaboration between Central and State governments and key Public Sector Undertakings (PSUs) aimed at investing in critical agriculture-related infrastructure. This partnership is poised to enhance fertilizer production capacity, support farmers, and strengthen the country’s self-reliance in essential agricultural inputs.
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About Oil India
Oil India Limited (OIL) is a leading Indian state-owned energy company, holding “Maharatna” status, engaged in the exploration and production of crude oil and natural gas, with a legacy spanning over six decades. It also produces Liquefied Petroleum Gas (LPG) and is involved in the transportation of crude oil and refined petroleum products through pipelines, holding a significant share in the country’s total crude oil and natural gas production.