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Major Boost to Fertiliser Production: New Plant in Assam

Transforming Northeast Agriculture with Modern Technology

Major Boost to Fertiliser Production: New Plant in Assam

  • 22 Dec, 2025
  • 474

Introduction to the Ammonia-Urea Plant

Prime Minister Narendra Modi has laid the foundation stone for a ₹10,601-crore ammonia–urea fertiliser plant in Assam’s Dibrugarh district. This initiative marks a significant step towards industrial advancement in the northeast region. The project is spearheaded by the newly formed Assam Valley Fertiliser and Chemical Company Ltd (AVFCCL), with the goal of revitalising the area's historical significance in fertiliser production using modern, energy-efficient technology.

Investment in a Brownfield Fertiliser Unit

The plant will be constructed within the existing premises of Brahmaputra Valley Fertiliser Corporation Ltd. Once operational, it will have an annual urea production capacity of 12.7 lakh metric tonnes, with expectations of commissioning by 2030. Officials regard this project as a transformative measure in enhancing India's fertiliser security and lessening dependency on imports.

Economic and Employment Benefits for the Northeast

The Centre asserts that this new facility will create thousands of direct and indirect job opportunities. Various ancillary sectors, such as repair services, logistics, and supply chains, are anticipated to experience growth. With local production accelerating, logistic costs are expected to decrease, thereby improving fertiliser accessibility for farmers in Assam and its neighbouring states.

Strengthening Agricultural Support Systems

The fertiliser plant is projected to meet the fertiliser demand in Assam, the northeast, West Bengal, Bihar, Jharkhand, and eastern Uttar Pradesh. The government underscores that a steady supply of urea is crucial for stabilising agricultural productivity. Recent national output figures indicate an increase to 306 lakh metric tonnes from 225 lakh metric tonnes in 2014, reflecting sustained growth in domestic fertiliser capacity.

Exam-Oriented Facts

  • AVFCCL is a joint venture involving the Assam government, Oil India, NFL, HURL, and BVFCL.
  • The plant will produce 12.7 lakh metric tonnes of urea annually when operational.
  • Total project cost: ₹10,601 crore; commissioning targeted for 2030.
  • The facility is located at Namrup within BVFCL’s existing complex in Dibrugarh.

Key Policy and Regional Development Dimensions

The project aligns with broader agricultural and industrial policies aimed at enhancing self-reliance in fertiliser production. The Centre also connects this initiative to broader regional development objectives, including the palm oil mission and improved income support for rural areas. The government emphasises that modernising older fertiliser units is essential for sustaining long-term agricultural growth in the northeast.

Frequently Asked Questions (FAQs)

Q1. What is the investment cost of the new ammonia-urea plant in Assam?
Answer: The investment cost of the ammonia-urea plant in Assam is ₹10,601 crore, aimed at boosting local fertiliser production.

Q2. When is the ammonia-urea plant expected to be operational?
Answer: The plant is expected to be commissioned by 2030, enhancing fertiliser production capacity in the region.

Q3. How many job opportunities will the new plant create?
Answer: The new facility is projected to generate thousands of direct and indirect employment opportunities, benefiting the local economy.

Q4. What are the expected benefits of the ammonia-urea plant for farmers?
Answer: The plant will improve fertiliser availability and reduce logistic costs, benefiting farmers in Assam and neighboring states.

Q5. Which states will benefit from the plant's production?
Answer: The plant is expected to meet fertiliser demand in Assam, West Bengal, Bihar, Jharkhand, and eastern Uttar Pradesh.

UPSC Practice MCQs

Question 1: What is the annual production capacity of the new ammonia-urea plant in Assam?
A) 10 lakh metric tonnes
B) 12.7 lakh metric tonnes
C) 15 lakh metric tonnes
D) 20 lakh metric tonnes
Correct Answer: B

Question 2: Which company is responsible for the establishment of the ammonia-urea plant?
A) Brahmaputra Valley Fertiliser Corporation
B) Assam Valley Fertiliser and Chemical Company Ltd
C) Oil India
D) National Fertilizers Ltd
Correct Answer: B

Question 3: When is the commissioning of the ammonia-urea plant targeted for?
A) 2025
B) 2028
C) 2030
D) 2032
Correct Answer: C

Question 4: What is the total project cost of the ammonia-urea plant in Assam?
A) ₹5,000 crore
B) ₹8,000 crore
C) ₹10,601 crore
D) ₹15,000 crore
Correct Answer: C

Question 5: Which sector is expected to benefit from the new ammonia-urea plant in Assam?
A) IT sector
B) Tourism
C) Agricultural sector
D) Manufacturing sector
Correct Answer: C

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