National Fertilizers Limited (NFL) will invest around ₹572.45 crore to acquire an 18% equity stake in a proposed joint venture company that will set up a new ammonia-urea plant in Namrup, Assam. The company’s board approved the proposal at its meeting held on April 18, 2025.
As of 9:20 AM on April 21, 2025, National Fertilizers share price was trading at ₹85.68, a 0.35% up, down 25.69% over the past six months and 16.63% over the past year.
The joint venture aims to establish the Namrup-IV Fertilizer Plant within the existing premises of Brahmaputra Valley Fertilizer Corporation Ltd (BVFCL). The plant will have an annual urea production capacity of 12.7 lakh tonnes. It is being developed as a brownfield project.
The proposed shareholding in the joint venture is as follows:
BVFCL’s contribution will be in the form of tangible assets instead of cash.
The estimated total project cost is ₹10,601.40 crore. The funding structure will follow a 70:30 debt-equity ratio. NFL’s share of ₹572.45 crore will be a cash investment.
The tentative timeline for mechanical completion and commissioning of the plant is 48 months from the project’s start date. The joint venture company is yet to be formally incorporated. Once operational, the plant is expected to cater to urea demand in Assam, Bihar, West Bengal, Eastern Uttar Pradesh, and Jharkhand.
Read More: Best Fertilizer Stocks in India in April 2025 – 5Y CAGR Basis
The Union Cabinet approved the project in March 2025. It falls under the administrative control of the Department of Fertilizers, Ministry of Chemicals and Fertilizers.
The Namrup-IV project is in the early stages of formation. NFL’s board has approved its participation alongside other public sector and state government entities. The joint venture will proceed with incorporation and project execution over the next four years.
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Published on: Apr 21, 2025, 2:32 PM IST
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