India’s NFL to acquire 18% stake in Namrup urea project

MUMBAI (ICIS)–State-owned National Fertilizers Ltd (NFL) plans to acquire an 18% stake in a proposed joint venture (JV) that will build a 1.27 million tonne/year urea plant at Namrup in India’s eastern Assam state.

NFL plans to invest Indian rupees (Rs) 5.72 billion ($67 million) in the Namrup IV Fertilizer Plant, the company said in a disclosure to the Bombay Stock Exchange (BSE) on 18 April.

The state government of Assam will hold a 40% stake in the proposed joint venture; with NFL and Oil India Ltd (OIL) each holding an 18% stake. Hindustan Urvarak & Rasayan Ltd (HURL) will own 13% and Brahmaputra Valley Fertiliser Corp (BVFCL) will have the remaining 11%.

The project, which will be set up within the complex operated by BVFCL, is expected to cost Rs106 billion, it added.

The plant is expected to be commissioned within 48 months of the project launch, NFL said, adding that once operational, the plant will help meet the growing demand for urea in northeast India.

The Indian government approved the proposal for the new project on 19 March 2025 as part of its effort to reduce urea imports.

Indian finance minister Nirmala Sitharaman had announced the project during her budget speech on 1 February 2025. It will be the eighth plant with the same capacity that will be built in the south Asian country since 2019.

($1 = Rs85.12)